Question

A store prices tapes by raising the wholesale price 50% and adding 25 cents .What must a tape's wholesale price be if the tape sells for $1.99

Answer 1

Let's call the store value as s and the wholesale price as w. A store prices tapes by raising the wholesale price 50%(0.5 in decimals) and adding 25 cents, writing this as an equation, we have

`s(w)=w+0.5w+0.25`

If we invert the equation we're going to find the the wholesale price as a function of the store price.

`\begin{gathered} s=w+0.5w+0.25 \\ s=1.5w+0.25 \\ s-0.25=1.5w \\ w(s)=(s-0.25)/(1.5) \end{gathered}`

Now, to find the wholesale price if the sales price is $1.99, we just need to evaluate s = 1.99 on the function we created.

`w(1.99)=(1.99-0.25)/(1.5)=1.16`

The wholesale price is $1.16.