simple story problem...

mathcadette

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Aug 11, 2009
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I know this problem should be easy to understand, but can you explain why the answer is A? Why do you need to divide 50.75 by 1.4 to get the 36.25? I don't see where the 1.4 comes from...

Thanks for your time.



A bookstore's markup for textbooks is 40%. What is the wholesale price for a textbook that sells for $50.75?
a) $36.25
b) $71.05
c) $30.45
d) $8.67
e) $20.30
 
mathcadette said:
I know this problem should be easy to understand, but can you explain why the answer is A? Why do you need to divide 50.75 by 1.4 to get the 36.25? I don't see where the 1.4 comes from...
36.25 times something = 50.75
something = 50.75 / 36.25 = 1.4

Thats itself (1) plus 40% (.4), ergo 1.4
 
Well, I can understand that much, but if you don't know which multiple choice answer is correct, it's different.

I need to understand where the 1.4 comes from. What information does it represent? I was given the answer, but just going from the story problem, and the only information it shows, how would you know to use the 1.4?
 
Maybe somewhere in your textbook it tells you whether the percentage markup is based on the cost or the selling price. If it is based on the Cost, then it goes like this....

A bookstore's markup for textbooks is 40%. What is the wholesale price for a textbook that sells for $50.75?

Cost + Markup = Selling Price.
Markup = Rate of Markup * Cost.

Therefore
Cost + Rate of Markup * Cost = Selling Price.
Substituting in the known values, we have...

Let C represent Cost.

C + 0.40C = 50.75
C(1+0.40) = 50.75
C = 50.75/(1+.4)
C = 50.75/1.4 = 36.25.
 
"Itself" does not stand for "one book". It stands for the "cost" (wholesale price) of one book. There is a difference.
 
Sorry, I must have posted again as your response was coming through.

I don't have a book... It's a sample test to see if I can test out of algebra. (Hope you didn't hurt yourself laughing) Last algebra class was 20 years ago. I see now that maybe I should just go ahead and take the refresher class since I'm apparently slow at thinking this way these days. lol. Sad, I know. I'll keep practising and see what happens.

Thanks so much for your help! I appreciate the time you've given.
 
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