Question

The selling price of a​ refrigerator, is ​$638.00. If the markup is 10% of the​ dealer's cost, what is the​ dealer's cost of the​ refrigerator?

Answer 1

25% markup = original + 25% = 125% of original = 1.25 x original

Selling price = 1.25 x dealer price

Answer = 521.25/1.25=$417

Answer 2

The dealers price would be 100% they sell it for 10% more so it is sold at 110 % of what the dealer pays.

Divide the selling price by 110% to get the dealers cost.

638 / 110% = 638 / 1.1 = 580

The dealers cost is $580