Question

ABC Office Supply offers an electric typewriter for $129.95. If ABC received a 15% markup on cost by selling the typewriter at this price, what was the cost of the typewriter to ABC?

Answer 1

Sale price=129.95
Mark up=15%
x=at cost price to ABC
Set up proportion:
129.95 x
--------- = ---------- (Got 1 from 100% which is the cost to ABC and 1.15 from 100%
1.15 1 +15% which is the cost to customer then changed to
decimal form.) Cross multiply
129.95=1.15x
129.95/1.15=1.15x/1.15
113=x
Cost to ABC is $113

Answer 2

A 15% percent markup means that the typewriter cost was increased by 15%, or 0.15 by moving the decimal 2 places to the left. If the original price was x, and 15% of it is 0.15*x, we can add them up to get 1.15*x=129.95. Dividing both sides by 1.15, we get x=113 dollars