Question

If the selling price is $75.50 and includes the cost plus 5% of the cost, then what is the cost?

Answer 1

Let the cost be represented as \( C \).

According to the problem, the selling price includes the cost plus 5% of the cost. This can be expressed as:

\[
\text{Selling Price} = C + 0.05C
\]

This simplifies to:

\[
\text{Selling Price} = 1.05C
\]

We know that the selling price is $75.50, so we can set up the equation:

\[
1.05C = 75.50
\]

To find \( C \), we divide both sides of the equation by 1.05:

\[
C = \frac{75.50}{1.05}
\]

Calculating the right side:

\[
C = 71.90476
\]

Rounding to two decimal places, the cost is:

\[
C \approx 71.90
\]

Thus, the cost is \(\boxed{71.90}\).