Question

The selling price of an item is ​440$. It is marked down by ​20%, but this sale price is still marked up from the cost of ​320$. Find the markup from cost to sale price.

Answer 1

To calculate the markup from cost to sale price, the item's original sale price before a 20% markdown is determined to be $550 by dividing the discounted sale price ($440) by 0.80. Subtracting the item's cost ($320) from this amount gives the markup value of $230.

Step-by-step explanation:

The question is asking how to calculate the mark-up from cost to sale price for an item. The item's cost is $320, and after a 20% markdown on the selling price, the item sells for $440. To find the markup, first, calculate the sale price before the markdown. A 20% markdown implies that the sale price is 80% of the original selling price. Therefore, divide the sale price post-markdown by 0.80:

$440 ÷ 0.80 = $550

This means the item was initially marked at $550 before the 20% discount. To find the markup from cost to this initial sale price, subtract the cost from the sale price:
$550 - $320 = $230
The markup from cost to sale price before the markdown is $230.