Question

How do I solve this?:A store manager uses a markup rate of 24% on all appliances. Find the cost of a coffeemaker that sells for $77.50. Use the formula S= C+r•C, where S is the selling price, C is the cost, and r is the markup rate.

Answer 1

Use the formula S= C+r•C

where S is the selling price

C is the cost

and r is the markup rate

Given

S= $77.50

r = 24%

Then we substitute into the formula

$\begin{gathered} 77.50=\text{ C+0.24}\times C \\ 77.50=\text{ C+0.24}C \\ 77.50=\text{ C+0.24}C \\ 77.50=1.24C \\ \text{divide both sides by 1.24} \\ \frac{77.50}{1.24}=\frac{1.24C}{1.24} \\ \\ C=62.50 \end{gathered}$

The cost of a coffeemaker is $62.50