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Problem-Solving and Data AnalysisVery hardWorking back from a marked-up price

Problem-Solving and Data Analysis practice question

A shop adds a 20% markup to what it pays for each item. It sells a lamp for $240. How many dollars did the shop pay for the lamp?

Answer: 200

1.2 × cost = 240, so cost = 200.

Common wrong answers

If you answered 192
192 subtracts 20% of 240.
If you answered 220
220 subtracts 20 dollars.
If you answered 288
288 adds 20% to 240.

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