If I bought an item for $80 on which there was a 30% markup, what is the formula to determine the pre-markup price?
0.7x = 80
To determine the pre-markup price, you can use the formula:
Pre-markup price = Selling price / (1 + Markup percentage)
In this case, the selling price is $80, and the markup percentage is 30%. Let's substitute these values into the formula:
Pre-markup price = $80 / (1 + 0.30)
Now, let's simplify the expression:
Pre-markup price = $80 / 1.30
Dividing $80 by 1.30, we find:
Pre-markup price ≈ $61.54
Therefore, the pre-markup price of the item is approximately $61.54.