Question

A furniture store pays a certain amount for a mattress, called the wholesale price.

Then, the store marks up the amount they paid to 225% of their cost (wholesale price) to sell it (retail price).

The mattresses didn't sell, so later they put the mattress on sale for 50% off of the retail price. A customer just bought the mattress on sale and paid $800.

What was the retail price (selling price) of the mattress, before the discount? #

Answer 1

$1600

Explanation:

The $800 that the customer paid is 50% of the retail price, so the retail price is twice that amount:

$800/0.50 = $1600

The selling price of the mattress before the discount was $1600.

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Additional comment

The wholesale price was $1600/2.25 = $711.11