If the markup is %50 and the selling price is $300, what is the initial price?
Given answers:
A $150
B $200
C $350
D $400
I asked help from my mother and she said the answer was A, $150, although from the formula R = C / ( 1 - G) (to calculate revenue R based on the cost C and the desired gross margin G, where G is in decimal form), which I got from calculatorsoup, I say 600 = 300 / 1 - .5, or in other words, initial price = $600. I know my answer's wrong and is seeking for others.
Thank you tutors for sparing your time to review my questions and my problem.
with a 50% markup, the selling price is 1.50 times the cost. So, the cost is 200.
200$
To find the initial price, we need to use the formula:
Selling Price = Initial Price + Markup
Given information:
Markup = 50%
Selling Price = $300
Let's set up the equation:
$300 = Initial Price + (50% of Initial Price)
50% of Initial Price can be expressed as 0.5 times the Initial Price.
$300 = Initial Price + 0.5 * Initial Price
We can simplify this equation:
$300 = 1.5 * Initial Price
Dividing both sides of the equation by 1.5:
$300 / 1.5 = Initial Price
Initial Price = $200
Therefore, the correct answer is B, $200.
To determine the initial price, you can use the formula for calculating the selling price with a given markup percentage. The formula is:
Selling Price = Initial Price + (Markup Percentage * Initial Price)
In this case, the selling price is given as $300 and the markup percentage is 50% (or 0.5 as a decimal). Let's substitute the values into the formula and solve for the initial price:
$300 = Initial Price + (0.5 * Initial Price)
We can simplify the equation:
$300 = 1.5 * Initial Price
Now, divide both sides of the equation by 1.5:
$300 / 1.5 = Initial Price
This gives us:
Initial Price = $200
Therefore, the correct answer is B, $200.