Sullivan’s Handbags marks up their bags at 45% of the selling price. Pat Sullivan saw a bag at a trade show that she would sell to her customers for $85. What is the most she could pay for the bag and still retain the 45% markup of the selling price?
To find the most Pat Sullivan could pay for the bag and still retain the 45% markup of the selling price, we can follow these steps:
Step 1: Calculate the selling price of the bag with a 45% markup.
Let's call the cost price of the bag "x". The selling price is the cost price plus the markup. So, the selling price is:
Selling Price = Cost Price + Markup
Selling Price = x + 45% of x
Selling Price = x + 0.45x
Selling Price = 1.45x
Step 2: Set up an equation using the given selling price.
According to the question, the selling price is $85. So, we have the equation:
1.45x = $85
Step 3: Solve for x.
To find x, divide both sides of the equation by 1.45:
x = $85 / 1.45
x ≈ $58.62
Therefore, the most Pat Sullivan could pay for the bag and still retain the 45% markup of the selling price is approximately $58.62.