A large supermarket chain purchases a box of cereal from a food wholesaler. If the supermarket chain uses a markup of 20 percent on its selling price of $2.85, what is the price the supermarket chain paid the food wholesaler?
A) $2.12
B) $2.28
C) $2.45
D) $2.55
E) $2.67

Question

Quizplus · Accepted Answer

To find the price paid to the wholesaler, let x be the price paid. The selling price is x + 0.20x = 1.20x. Given the selling price is $2.85, we have 1.20x = $2.85. Solving for x gives x = $2.85 / 1.20 = $2.375. However, this doesn't match any option, so we must have misunderstood the markup. The markup is on the selling price, so the cost is 80% of $2.85, which is $2.28.

A Large Supermarket Chain Purchases a Box of Cereal from a Food