business math

Question

I f the markup formula is  40% of cost and the selling price of the item is $49.99,what is the cost? a) $31.76 b) $33.33 c) $ 34.33 d) $35.71

Answer 1

$49.99 must be divided by 1.4 [cost plus 40%]

 

49.99 / 1.4 = 35.707142...

 

Rounded to the nearest penny, the answer is $35.71

Answer 2

If the markup formula is 40% of the cost, then the final price will be 1.4 times the original cost.  So, if you take the selling price of the item, 49.99 and divide by 1.4 you will get the answer.

 

49.99/1.4= 35.707 or $35.71