Question

At an appliance store, the price of a refrigerator is marked up 25% to $406. 25. What was the price of the refrigerator before the markup? Enter your answer in the box.

Answer 1

The price of the refrigerator before markup will be $325. This can be calculated by reversing the markup in the price of the refrigerator.

What is Markup?

Markup basically refers to the difference between the selling price of a good and its cost. The markup is generally expressed as a percentage and is added to the cost of the good to ensure cost cover and earn profit.

For the given question, the before markup price can be calculated as:

Given:

$\rm \:\:After\: markup\:price = \ 406.25\\\\Markup\:percentage\:\: = 25\%$

Makeup is the addition to the original price of a good. The after markup price can be taken as 100% + 25% = 125% of original price.

Then original price can be calculated as:

$\rm x = \ 406.25 \times \dfrac{100}{125}\\\\x = \ 325$

Therefore the before markup price is $325.

Learn more about markup here:

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