If an item that sells for $81.00 has a 50.0% markup on cost, what is the cost?
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P = Po + 0.5Po = $81.
1.5Po = 81
Po = $54 = Initial price or Cost.
To find the cost of the item, we need to work backwards from the selling price and the markup percentage.
1. First, we need to determine the original price or the cost of the item before the markup. Since the markup is calculated based on the cost, we'll use the variable 'C' to represent the cost.
2. We know that the selling price is $81.00, which includes the markup. So, the selling price can be expressed as the cost plus the markup:
Selling Price = Cost + Markup
$81.00 = C + Markup
3. The markup is given as 50.0% of the cost. To calculate the markup amount, we take 50.0% of the cost:
Markup = 0.50 * C
4. Now, we can substitute the markup value back into our equation for selling price:
$81.00 = C + (0.50 * C)
5. Combine like terms:
$81.00 = C * (1 + 0.50)
6. Simplify the right side of the equation:
$81.00 = C * 1.50
7. Divide both sides by 1.50 to isolate the cost:
C = $81.00 / 1.50
8. Calculate the cost:
C = $54.00
Therefore, the cost of the item is $54.00.