Question

Selling price of a bicycle = $195

Markup Rate = 30%

Let the original cost price of the bicycle be x.

Markup rate =equation image indicator

Plug in the values in the above formula and find the original cost.

30 = equation image indicator → equation image indicator

Value: 1


Find the value of x by solving the above equation.

a.
130

b.
150

c.
215

Answer 1

To find the original cost price \( x \) of the bicycle using the given markup rate and selling price, we can use the formula for marking up:

\[
\text{Selling Price} = \text{Cost Price} + (\text{Markup Rate} \times \text{Cost Price})
\]

Given:
- Selling Price = $195
- Markup Rate = 30% (or 0.30)

So we can rewrite the equation as:

\[
195 = x + (0.30 \times x)
\]

This simplifies to:

\[
195 = x(1 + 0.30)
\]

\[
195 = x(1.30)
\]

Now, to find \( x \):

\[
x = \frac{195}{1.30}
\]

Calculating \( x \):

\[
x \approx 150
\]

Thus, the original cost of the bicycle is approximately \( 150 \).

The answer is:

**b. 150**