If the markup is %50 and the selling price is $300, what is the initial price?
Given answers:
A $150
B $200
C $350
D $400
I asked help from my mother and she said the answer was A, $150, although from the formula R = C / ( 1 - G) (to calculate revenue R based on the cost C and the desired gross margin G, where G is in decimal form), which I got from calculatorsoup, I say 600 = 300 / 1 - .5, or in other words, initial price = $600. I know my answer's wrong and is seeking for others.
Thank you tutors for sparing your time to review my questions and my problem.
2 answers
with a 50% markup, the selling price is 1.50 times the cost. So, the cost is 200.
200$