The bathing suits were marked up 150% of the cost to get a selling price of $75. The did not sell well, so the department store reduced the markup to 90% of the cost. What was the new selling price?

Answer 1

If you markup at the cost by 150%, then you multiply the initial cost by 1.5 to get the selling price of $75.

Or,

1.5(Cost) = $75 or Cost = $75/1.5 = $50

Then,

90% of Cost = .9($50) = $45