A grocery store adds a 25% markup to the wholesale price of goods to determine their retail price. find the wholesale price of a gallon of milk that retails for $2.59.

Question

A grocery store adds a 25% markup to the wholesale price of goods to determine their retail price. find the wholesale price of a gallon of milk that retails for $2.59.

Answer 1

If the price of an object is marked up 25% one way to determine the new price is:

P + .25P = new price

1.25P = new price, i.e. for a markup of 25% simply multiply by 1.25 to get the new price.

That means you can multiply the wholesale price by 1.25 to get the retail price:

1.25W = R

The problem gives you the retail price and asks you to find the corresponding wholesale price, so substitute R=2.59.

1.25W = 2.59.

Now solve for W:

W = 2.59/1.25