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Problem-Solving and Data AnalysisMediumCost price from a markup

Problem-Solving and Data Analysis practice question

A shop sells a lamp for $70, which is 40% more than the shop paid for it. How many dollars did the shop pay for the lamp?

Answer: 50

Selling price = 1.40 × cost, so cost = 70/1.40 = 50. Check: 40% of 50 is 20, and 50 + 20 = 70.

Common wrong answers

If you answered 30
30 is 70 − 40, subtracting the percent as a dollar amount.
If you answered 42
42 is 70 − 40% of 70 (70 − 28). The 40% is of the COST, not of the selling price.
If you answered 98
98 is 70 × 1.4, adding 40% instead of removing it.

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