Answer:
Hence, the Cost of the item is:
$ 144.95
Explanation:
" Markup is the ratio between the cost of a good or service and its selling price.A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit ".
Here we are given Markup price= $ 45
and Selling price=$189.95
So the cost price is determined by:
Selling price=Cost price+ Markup price.
⇒ Cost Price=Selling Price-Markup Price.
⇒ Cost Price=$189.95-$45
⇒ Cost Price=$144.95
Hence, Cost of item is: $144.95.