The selling price of refridgetor is $745.50. If the markup is 5 % of dealer's cost. What is dealer's cost of refrigerator?

Question

The selling price of refridgetor is $745.50. If the markup is 5 % of dealer's cost. What is dealer's cost of refrigerator?

Answer 1

Hi Melissa,

The cost that the customer pays for the fridge is:

$745.50 = (dealer's cost) + 0.05 (dealer's cost)

Let the dealer's cost be x:

$745.50 = x + 0.05x

Factor

$745.50 = x (1+ 0.05)

Solve for x