The markup rate of furniture at Al's Furniture Barn is 48%. If the markup amount on an armchair is $123, what is the cost of the armchair?
A) $256.25
B) $186.96
C) $159.04
D) $59.04

Question

Quizplus · Accepted Answer

The markup amount is 48% of the cost, so the cost is 100/(100+48) = 2/3 of the selling price. The selling price is the cost plus the markup, so the cost is 2/3 * (cost + 123) = 2/3 * cost + 82. Solving for the cost, we get cost = 82 * 3/2 = $123.

The Markup Rate of Furniture at Al's Furniture Barn Is