The selling price of a​ refrigerator, is ​$854.40 . If the markup is 20 % of the​ dealer's cost, what is the​ dealer's cost of the​ refrigerator?

Question

1

 

Answer 1

Let d = dealer's price. Here's what we know:

20% = 0.2 (20% is the same as 0.2)

1 + 0.2 = 1.2 (adding the original whole plus the markup means it'll cost customer 1.2 of the original price)

1.2d = 854.4 (the deal price plus the markup costs $854.40)

 

Divide both sides by 1.2, and you'll get the dealer price.