Wholesale Distributors sells to its contractors with a 42% markup on cost. If the selling price for cabinets is $9,182, what is the cost to contractors based on cost? (Round your answer to the nearest cent.)
1.42x = 9,182
x = 6,466/20
To find the cost to contractors based on cost, we need to calculate the original cost before the markup.
Let's assume the cost to contractors is C.
The selling price is $9,182, and the markup on cost is 42%.
Markup on cost can be calculated using the formula:
Markup on cost = (Selling price - Cost) / Cost * 100
We can rearrange the formula to find the cost:
Cost = Selling price / (1 + Markup on cost/100)
Substituting the given values:
Markup on cost = 42%
Selling price = $9,182
Cost = $9,182 / (1 + 42/100)
Now let's calculate the cost to contractors.
Cost = $9,182 / (1 + 0.42)
Cost = $9,182 / 1.42
Cost = $6,470.42 (rounded to the nearest cent)
Therefore, the cost to contractors based on cost is approximately $6,470.42.