Question

The bike store marks up wholesale cost of all the bikes they sell by 40%. Andre wants to buy a bike with a price tag of $155.What is the whole sale cost of the bike?

Answer 1

To determine the wholesale cost of a bike that is sold at a marked-up price of $155, we divide the price by 1.40. This calculation reveals that the wholesale cost of the bike is approximately $110.71.

Step-by-step explanation:

The student's question requires us to determine the wholesale cost of a bike that is being sold at a mark-up of 40%. If the retail price of the bike is $155, we need to work backward to find the original price before the mark-up.

To solve this, we consider that the final price (retail price) represents 140% of the wholesale cost (100% original cost + 40% mark-up). To find the wholesale cost (100%), we divide the retail price by 1.40 (since 140% as a decimal is 1.40).

Here is the calculation step-by-step:

1. Convert the percentage mark-up into decimal form by dividing by 100. Thus, 140% becomes 1.40.
2. Divide the retail price by 1.40 to find the wholesale cost.
   Wholesale cost = Retail price / 1.40
3. Plug in the values and calculate:
   Wholesale cost = $155 / 1.40
4. The calculation gives us:
   Wholesale cost = $110.71 (rounded to two decimal places)

Therefore, the wholesale cost of the bike is approximately $110.71.