Question

Bruce paid $360 for a new mountain bike to sell in his shop. He wants to price the bike so that he can offer a 20% markdown but still keep a markup of 30% of the price he paid for it. What should be the full selling price of the bike?

Answer 1

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Answer:

$585

Explanation:

Bruce wants 100% +30% of the cost to be 80% of the selling price. So, the selling price (p) is ...

$360(1.30) = 0.80p

p = $360·1.30/0.80 = $585

The full selling price of the bike should be $585.

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Check

With 20% off, the sale price would be $468. That is 468/360 = 1.30 times the amount Bruce pays for it.