Question

Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $130 for a comforter. Misu wants a 20% markup on cost instead of on selling price. What is Misu’s cost? (Round your answer to the nearest cent.)

Answer 1

Formulating an equation for this situation we have:

S = C + 0.2(C) (S: selling price, C: Cost , 0.2= 20%)

130 = C + 0.2C (Replacing)

130 = 1.2C (Adding like terms)

130/ (1.2) = C (Dividing on both sides by 1.2)

108.333=C (Dividing)

The answer is $108.33 (Rounding to the nearest cent)