Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $140 for a comforter. Misu wants a 25% markup on cost instead of on selling price. What is Misu’s cost? (Round your answer to the nearest cent.)
how can I solve this problem?
To find Misu's cost, we need to first find the selling price of the comforter.
Given that the customers will pay no more than $140 for the comforter, we can consider this as the selling price.
To calculate the cost, we need to find the original price before the markup.
Let's assume the cost is "C".
Since Misu wants a 25% markup on cost instead of on selling price, the selling price can be represented as the cost plus the markup.
Using the formula: Selling Price = Cost + Markup, we can calculate the selling price.
Markup can be calculated as a percentage of the cost, so given the 25% markup, we can write: Markup = 0.25 * C.
Substituting these values into the formula: Selling Price = C + 0.25 * C, we can simplify:
140 = C + 0.25C
Combining like terms: 1.25C = 140
Dividing by 1.25 to solve for C:
C = 140 / 1.25
C ≈ 112
Therefore, Misu's cost is approximately $112.