Question

A shoe store marks up the wholesale cost of all shoes they sell by 20%. Calvin wants to buy a pair of shoes that has a price tag of $145. What was the wholesale cost of the shoes?

Answer 1

The wholesale price is $120.83

Answer 2

The sell price is the wholesale price plus 20%

Divide the sell price by 1.2 ( 100% + 20%)

145 / 1.2 = 120.83

The wholesale price is $120.83