the selling price of a refrigerator is $704.55. if the markup is 5% of the dealers cost, what is the dealers…

the selling price of a refrigerator is $704.55. if the markup is 5% of the dealers cost, what is the dealers cost of the refrigerator?

the selling price of a refrigerator is $704.55. if the markup is 5% of the dealers cost, what is the dealers cost of the refrigerator?

Answer

Explanation:

Step1: Let dealer's cost be $x$.

The selling - price is the sum of the dealer's cost and the markup. The markup is 5% of the dealer's cost, so the selling - price formula is $x + 0.05x=1.05x$.

Step2: Set up the equation.

We know the selling price is $704.55$, so $1.05x = 704.55$.

Step3: Solve for $x$.

Divide both sides of the equation by 1.05: $x=\frac{704.55}{1.05}$. $x = 671$.

Answer:

$671$