Math Is Fun Forum

Nestea

Member

Registered: 2005-11-12

Posts: 9

Mark UP and Mark Down

This is one is tricky, i cant figure it out.

Cost| Overhead|  Markup| Regular Price|  Rate of Markdown| Sale reduced| Profit Reduced
?          50%          70%        1845.24              60%                    738.10         ?

I just need the technique to find the cost.
Appreciated the help from mathisfun.

ryos

Member

Registered: 2005-08-04

Posts: 394

Re: Mark UP and Mark Down

Who's cost is this? Is that the price a store pays for something? If so, then you just have to divide the regular price by 1.7.

To see why, remember that to mark it up 70%, the store multiplied the cost by 1.7. Algebraically,
P = 1.7*C

So, to go back to the cost from the price, just do the opposite: divide by 1.7. Algebraically, you solve for C:
C = P/1.7

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El que pega primero pega dos veces.

MathsIsFun

Administrator

Registered: 2005-01-21

Posts: 7,711

Re: Mark UP and Mark Down

Another "markup" one. I am sticking with my definition of markup, which does NOT include overheads.

So Cost plus Markup = Regular Price

Cost × (1.7) = 1845.24 → Cost = 1845.24 / 1.7 = 1085.43

Sale Price = 1845.24 × 0.6 = 1107.14 (also 1845.24-738.10=1107.14)

Profit does need to consider overhead, so:

Cost plus Overhead = 1085.43 × 1.5 = 1628.14

Profit WAS 1845.24-1628.14=217.1
Profit IS NOW 1107.14-1628.14=-521 (521 LOSS)

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"The physicists defer only to mathematicians, and the mathematicians defer only to God ..."  - Leon M. Lederman