A store marks up all of their merchandise by 70%. The floor price of a scarf is $117.25.1. What was the stores purchase price before the markup for this item?
Accepted Solution
A:
Answer: $68.97Step-by-step explanation:Markup is the difference between the cost of an item and the price at which it is sold: cost price + markup = selling priceHere, the markup is said to be 70%. The base for that percentage can be either the cost price or the selling price. The way this question is worded suggests the markup is 70% of the cost price.So, we have ... cost price + 0.70 × cost price = selling priceor cost price × (1 + 0.70) = selling price__Then, to find the cost price, we can divide by its coefficient in this equation. Doing that gives ... cost price = (selling price)/1.70 cost price = $117.25/1.70 = $68.97The store's purchase price before the markup for this item was $68.97.