Question

HELPP!!

Nigel's family is shopping for a new refrigerator. The selling price of the model they are considering is $1,875. Nigel researches to find that the markup on that particular model refrigerator is 20%. What is the wholesale cost to the retailer to the nearest cent?

Answer 1

$1,562.50

Explanation:

Markup= (selling price- cost)/cost

Let cost be represented by C

0.20 = (1875-C)/ C

0.20C = 1875 - C

0.20C+ C = 1875

1.20C=1875

Divide both sides by 1.20;

C= 1875/1.20

C= $1,562.50

The wholesale cost was $1,562.50