16Hit1600
Problem-Solving and Data AnalysisHardPrice before a markup

Problem-Solving and Data Analysis practice question

A store marks up the wholesale cost of a jacket by 15% to get its selling price of $276. What was the wholesale cost, in dollars?

Answer: 240

1.15 × cost = 276, so cost = 276/1.15 = 240.

Common wrong answers

If you answered 261
261 subtracts a flat 15 instead of a percentage.
If you answered 234.6
234.60 takes 15% OFF 276 (276 × 0.85); the markup was added to the cost, not to the price.
If you answered 317.4
317.40 adds 15% to 276, going the wrong direction.

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