Question

Front range cabinet distributors in colorado springs, colorado, sells to its contractors with a 42% markup on cost. if the selling price for cabinets is $9,655, what is the cost to contractors based on cost? (round your answer to the nearest cent.)

Answer 1

Answer:

$6,799.30

Explanation:

selling price = cost + markup

selling price = 9,655

markup = 42% of cost = 0.42 cost

9,655 = cost + 0.42cost

9,655 = 1.42cost

cost = 9,655 / 1.42

cost = 6,799.30

markup = 6,799.30 x 42% = 2855.70

we can check the answer by using the following formula:

markup percentage = markup / cost =  2,855.70 / 6,799.30 = 42%

Answer 2

This is a simple algebra problem.

To determine price, you need to Have the cost of the product plus the markup equals the sales price.

We know the sales price and the markup, so we need to solve for the cost.

9,655= 1.42(x)

X=9,655/1.42