Question

The selling price of a​ refrigerator, is ​$ 796.40 . If the markup is 10 % of the​ dealer's cost, what is the​ dealer's cost of the​ refrigerator? ​$ nothing

Answer 1

The final price (what it is selling for) is $796.40

The markup is 10% of the original price (the dealer's cost) , meaning that it is 10% more.

We need to find the original price.

We write this as an equation

The original price *110% = final price

This is because the original price is itself (100%) added with 10%

Plug in the known final price

Original Price * 110% = 796.40

Convert 110% to a decimal because the other numbers- such as the final price are also decimal numbers.

Convert 110% to a decimal by moving the decimal point up 2 spaces ( basically dividing it by 100)

110% = 1.1

So it is now

Original price *1.1 = 796.40

Divide both sides by 1.1 to isolate our unknown, the original price

Original price = $724