Question

Sue’s Corner Market has a markup of 60% on bottled water. If the market sells a bottle of water for $2, find the original amount that Sue pays.

Answer 1

1.25 dollars.

Explanation:

Answer 2

Markup is the amount added to the cost price of goods to cover overhead and profit.

Sue’s Corner Market has a markup of 60% on bottled water.

Let us say original price was $x.

Now price after markup is $2.

So we can make an equation like:

original price + markup price = price after markup

x + 60% of x =2

`x + 0.6x =2`

`1.6x =2`

dividing both sides by 1.6

x= 1.25

So original price was 1.25 dollars.