Question bank / Percentages

Math · Problem-Solving and Data AnalysisMedium

A store sets the retail price of an item by increasing its wholesale cost by 60%60\%. If the retail price of a lamp is $72\$72, what is the wholesale cost, in dollars, of the lamp?

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Answer: 45

The retail price is 160%160\% of the wholesale cost ww, so 1.6w=721.6w = 72. Dividing gives w=45w = 45 dollars.

Subtracting 60%60\% of $72\$72 gives $28.80\$28.80, but the markup was 60%60\% of the wholesale cost, not of the retail price.

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