The selling price of a refrigerator is $712.80. The markup is 20% of the dealer's cost. What is the dealer's cost of the refrigerator?
1 Answer
Feb 1, 2018
Dealer's cost price of the refrigerator
Explanation:
For example, if a product costs $100, the selling price with a 25%
markup would be $125. Gross Profit Margin = Sales Price – Unit
Cost = $125 – $100 = $25. Markup Percentage = Gross Profit
Margin/Unit Cost = $25/$100 = 25%
Refer the above example and do the sum now.
Selling price = $ 712.80
Mark up price = 20% of dealer's cost price
Therefore, cost price = selling price - markup price
Cost price