Final answer:
To find the wholesale price with a retail price of $750 and a retail margin of 34%, convert the margin to a decimal, apply the formula R = W + (W × margin), and solve for W to get approximately $559.70 as the wholesale price.
Step-by-step explanation:
To calculate the wholesale price given a retail price of $750 and a retail margin of 34%, we need to understand what the retail margin percentage represents. The retail margin is the percentage of the retail price that represents profit over the cost, which in this case is the wholesale price. To find the wholesale price, you can use the following steps:
- First, remember that the retail margin is the retailer's profit, which is the difference between the retail price and the wholesale cost.
- Express the retail margin as a decimal by dividing it by 100. So, 34% becomes 0.34.
- Since the retail price includes the margin, the relationship between the wholesale price (W) and the retail price (R) can be written as R = W + (W × margin).
- Substitute the known values into the equation: $750 = W + (W × 0.34).
- Rearrange the equation to solve for W, the wholesale price: W = $750 / (1 + 0.34).
- Calculate the wholesale price: W = $750 / 1.34, which is approximately $559.70.
Hence, the wholesale price is approximately $559.70.