Posted by **daylo** on Sunday, January 23, 2011 at 6:52pm.

65, A drugstore sells a drug costing $85 for $112 and drug costing $175 for $238.

A, If the markup policy of the drugstore is assumed to be linear, write an equation that expresses retail price R in terms of cost C (wholesale price).

B, what does a store pay (to the nearest dollar) for a drug that retails for $185?

- Finite Math -
**drwls**, Sunday, January 23, 2011 at 8:04pm
Assume the linear relationship

R = mC + b

where m and b are constants

112 = 85 m + b

238 = 175 m + b

126 = 90m

m = 1.40

b = -7

R = 1.40 C - 7

This is a linear relationship, but it means they will be selling under C < $5 drugs at a loss, or paying people to take them. This is unrealistic.

If R = 185, C = $137.14

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