Final answer:
To find the original cost of a sink that has a selling price of $186 with an 80% markup, you divide the selling price by 1.80. The original cost comes out to $103.33.
Step-by-step explanation:
To calculate the selling price of a sink that is marked up by 80%, you must first understand what markup is. A markup is the difference between the cost of a product and its selling price, which represents the profit on the sale. An 80% markup means that the cost of the item is increased by 80% to determine the selling price.
If the sink's cost after markup is $186, we can calculate the original cost (or cost price) before markup. Let's denote the original cost as C. The markup on the cost price is 80%, so the equation is C + 0.80 × C = $186. Combining like terms we get 1.80 × C = $186. To find C, divide both sides by 1.80:
C = $186 / 1.80 = $103.33
Thus, the original cost of the sink is $103.33. The selling price, which includes the markup, is $186.