Question

Then, the store marks up the retail price to `150\%` of the wholesale price. Later, they put the mattress on sale for `50\%` off of the retail price. A customer just bought the mattress on sale and paid `\$1,200.`

a. What was the retail price of the mattress, before the discount?

Answer 1

$2400

Explanation:

At 50% off, the sale price is half the original price. Then the original price is double the sale price, or ...

retail price = 2 × $1200 = $2400

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Additional comment

The wholesale price is $2400/1.50 = $1600. The store took a loss of $400 on that sale.