Question

A company took a product, marked it up 78%, and ended up selling it for $124.83. Based on this information, calculate the ORIGINAL price of the product.

a) $70.32
b) $70.00
c) $70.50
d) $71.14

Answer 1

To find the original price of a product marked up by 78% and sold for $124.83, you divide the final price by 1.78. The precise calculation gives an original price of approximately d.$70.14.

Step-by-step explanation:

The original question asks to calculate the ORIGINAL price of a product that was marked up by 78% and sold for $124.83. To solve this, we need to work backward from the final price to determine what the price was before the markup. The formula to calculate the original price before the markup is:

Original Price = Final Price / (1 + Markup Percentage)

We first convert the markup percentage from a percentage to a decimal by dividing by 100: 78% / 100 = 0.78.

Then we add 1 to the decimal form of the markup percentage: 1 + 0.78 = 1.78.

Now we can solve for the Original Price:

Original Price = $124.83 / 1.78

After performing the division, we find the Original Price is approximately $70.14.

Comparing this to the available options, the closest is b) $70.00; however, the precise calculation gives us $70.14, which is not listed in the provided options. It is important to note that this answer is based on an exact calculation and the options provided might have been rounded.