ABC Office Supply offers an electric typewriter for $129.95. If ABC received a 15% markup on cost by selling the typewriter at this price, what was the cost of the typewriter to ABC?

Answer 1

To find the cost of the typewriter to ABC, we can use the relationship between the cost, the selling price, and the markup.

Let \( C \) be the cost of the typewriter. ABC Office Supply sells the typewriter for $129.95, and they have a 15% markup on cost. This means the selling price is equal to the cost plus 15% of the cost. We can express this mathematically as:

\[ \text{Selling Price} = C + 0.15C \]

This simplifies to:

\[ \text{Selling Price} = 1.15C \]

Now, we can set this equal to the selling price of $129.95:

\[ 1.15C = 129.95 \]

To find \( C \), divide both sides by 1.15:

\[ C = \frac{129.95}{1.15} \]

Calculating that gives:

\[ C \approx 113.00 \]

Thus, the cost of the typewriter to ABC was approximately $113.00.