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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