Question

The selling price of a​ refrigerator, is ​$822.50. If the markup is 25 % of the​ dealer's cost, what is the​ dealer's cost of the​ refrigerator?
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Part 1
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Answer 1

To find the dealer's cost of the refrigerator, we can use the formula for markup:

\[
\text{Selling Price} = \text{Cost} + \text{Markup}
\]

The markup is 25% of the dealer's cost. This can be expressed as:

\[
\text{Markup} = 0.25 \times \text{Cost}
\]

Now, let's denote the dealer's cost as \( C \). We can then rewrite the selling price equation as:

\[
822.50 = C + 0.25C
\]

This simplifies to:

\[
822.50 = 1.25C
\]

To find \( C \), we can solve for it by dividing both sides by 1.25:

\[
C = \frac{822.50}{1.25}
\]

Now, let's calculate \( C \):

\[
C = 658.00
\]

Therefore, the dealer's cost of the refrigerator is:

\[
\boxed{658.00}
\]