Question

A store marks up all of their merchandise by 70%. The floor price of a scarf is $117.25.

1. What was the stores purchase price before the markup for this item?​

Answer 1

$68.97

Explanation:

Markup is the difference between the cost of an item and the price at which it is sold:

cost price + markup = selling price

Here, the markup is said to be 70%. The base for that percentage can be either the cost price or the selling price. The way this question is worded suggests the markup is 70% of the cost price.

So, we have ...

cost price + 0.70 × cost price = selling price

or

cost price × (1 + 0.70) = selling price

__

Then, to find the cost price, we can divide by its coefficient in this equation. Doing that gives ...

cost price = (selling price)/1.70

cost price = $117.25/1.70 = $68.97

The store's purchase price before the markup for this item was $68.97.