Question

the selling price of a refrigerator, is $577.50. if the markup is 25% of the dealer’s cost, what is the dealer’s cost of the refrigerator?

Explanation:

Step1: Define cost variable

Let \( C \) = dealer's cost.

Step2: Set up selling price equation

Selling price = Cost + 25% of cost:
\( 577.50 = C + 0.25C \)

Step3: Combine like terms

Simplify the right-hand side:
\( 577.50 = 1.25C \)

Step4: Solve for cost

Divide both sides by 1.25:
\( C = \frac{577.50}{1.25} \)

Answer:

\( 462.00 \)