Step 1: Understand that the selling price is after both the markup and the discount have been applied.

Step 2: The selling price is $540, which is 75% of the marked price (because a 25% discount means the customer is paying 75% of the marked price).

Step 3: To find the marked price, we can set up the equation 0.75 * Marked Price = $540. Solving for Marked Price gives us Marked Price = $540 / 0.75 = $720.

Step 4: The marked price is 60% above the cost price. This means the cost price is less than the marked price.

Step 5: To find the cost price, we can set up the equation Marked Price = Cost Price + 0.60 * Cost Price. Substituting the value of Marked Price from step 3 gives us $720 = Cost Price + 0.60 * Cost Price.

Step 6: Simplifying the equation from step 5 gives us $720 = 1.60 * Cost Price. Solving for Cost Price gives us Cost Price = $720 / 1.60 = $450.

So, the cost price of the article is $450.

Question

Step 1: Understand that the selling price is after both the markup and the discount have been applied.

Step 2: The selling price is $540, which is 75% of the marked price (because a 25% discount means the customer is paying 75% of the marked price).

Step 3: To find the marked price, we can set up the equation 0.75 * Marked Price = $540. Solving for Marked Price gives us Marked Price = $540 / 0.75 = $720.

Step 4: The marked price is 60% above the cost price. This means the cost price is less than the marked price.

Step 5: To find the cost price, we can set up the equation Marked Price = Cost Price + 0.60 * Cost Price. Substituting the value of Marked Price from step 3 gives us $720 = Cost Price + 0.60 * Cost Price.

Step 6: Simplifying the equation from step 5 gives us $720 = 1.60 * Cost Price. Solving for Cost Price gives us Cost Price = $720 / 1.60 = $450.

So, the cost price of the article is $450.

Knowee AI · Accepted Answer

Step 1: Understand that the selling price is after both the markup and the discount have been applied.

Step 2: The selling price is $540, which is 75% of the marked price (because a 25% discount means the customer is paying 75% of the marked price).

Step 3: To find the marked price, we can set up the equation 0.75 * Marked Price = $540. Solving for Marked Price gives us Marked Price = $540 / 0.75 = $720.

Step 4: The marked price is 60% above the cost price. This means the cost price is less than the marked price.

Step 5: To find the cost price, we can set up the equation Marked Price = Cost Price + 0.60 * Cost Price. Substituting the value of Marked Price from step 3 gives us $720 = Cost Price + 0.60 * Cost Price.

Step 6: Simplifying the equation from step 5 gives us $720 = 1.60 * Cost Price. Solving for Cost Price gives us Cost Price = $720 / 1.60 = $450.

So, the cost price of the article is $450.

A merchant marks the price of an article 60% above the cost price and allows a discount of 25%. If the selling price is $540, what is the cost price of the article?

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