Question

The selling price of a refrigerator, is $463.05. If the markup is 5% of the dealer's cost, what is the dealer's cost of the refrigerator?

Answer 1

In order to find out how much is 5% of 463.05 we need to do the following:

463.05 x 0.05 = 23.15

and because we want to know the original price we need to do this

463.05 - 23.15 = 439.90

*we subtract because the price was increased if the price was decreased then we would have to add.