Question

If the markup used by the retailer is 60%, then find the cost of a bag, whose selling price is $\$320.$
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Answer 1

Given, selling price of bag $=\$320$

Let the cost price of bag is $X.$

Given, markup price is 60% of the cost price.
$\therefore \text{Markup price = 60\% of}X$
$=\frac{60}{100}\times X=\frac{20\times 3}{20\times 5}\times X$
$=\frac{3}{5}\times X$
$=\frac{3X}{5}$

We know that,
$\text{Selling price = Cost price + Markup price}$
$\Rightarrow 320=X+\frac{3X}{5}$
$\Rightarrow 320=\frac{5X}{5}+\frac{3X}{5}$
$\Rightarrow 320=\frac{5X+3X}{5}$
$\Rightarrow 320=\frac{8X}{5}$

Cross multiplying, we get
$320\times 5=8X$
$\Rightarrow 1600=8X$

Dividing both the sides by $8,$ we get
$\frac{1600}{8}=X$

Simplify and cancel out common factors, we get
$\Rightarrow \frac{8\times 200}{8}=X$
$\Rightarrow X=200$

Hence, the cost of the bag is $\$200.$