Questions: The selling price of a refrigerator, is 717.50. If the markup is 25% of the dealer's cost, what is the dealer's cost of the refrigerator? square

Transcript text: Appications Question 7, 1.3.19 Points: 0 of 1 The selling price of a refrigerator, is $\$ 717.50$. If the markup is $25 \%$ of the dealer's cost, what is the dealer's cost of the refrigerator? $\$ \square$

Solution

Solution Steps

To find the dealer's cost of the refrigerator, we need to understand that the selling price includes the dealer's cost plus a 25% markup. We can set up an equation where the selling price is equal to the dealer's cost plus 25% of the dealer's cost. Solving this equation will give us the dealer's cost.

Step 1: Define the Relationship Between Selling Price and Dealer's Cost

The selling price of the refrigerator is given as \$717.50. The markup is 25% of the dealer's cost. We can express the selling price ($S$) in terms of the dealer's cost ($C$) and the markup percentage ($M$) as follows: \[ S = C + \left(\frac{M}{100}\right) \cdot C \] \[ S = C \left(1 + \frac{M}{100}\right) \]

Step 2: Substitute the Given Values

We know the selling price ($S$) is \$717.50 and the markup percentage ($M$) is 25%. Substituting these values into the equation: \[ 717.50 = C \left(1 + \frac{25}{100}\right) \] \[ 717.50 = C \left(1 + 0.25\right) \] \[ 717.50 = C \cdot 1.25 \]

Step 3: Solve for the Dealer's Cost

To find the dealer's cost ($C$), we solve the equation: \[ C = \frac{717.50}{1.25} \] \[ C = 574.00 \]