Selling price of a refrigerator is $553.75. If the mark up is 25% of the dealers cost, what is the dealers cost of the refrigerator?

Question

Selling price of a refrigerator is $553.75. If the mark up is 25% of the dealers cost, what is the dealers cost of the refrigerator?

Answer 1

Assign c to represent the cost and the mark up amount will be (25%)c.

Therefore,

$553.75 = c + 0.25c

$553.75 = 1.25c

 

c = $443.00, the dealer's cost