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 to the food wholesaler?
A)$2.12
B)$2.28
C)$2.45
D)$2.55
E)$2.67

Question

Quizplus · Accepted Answer

A producer's selling price becomes the cost the wholesaler pays.The wholesaler's selling price becomes the retailer's cost.Next,this cost plus a retail markup becomes the retail selling price.Each markup should cover the costs of running the business and leave a profit.

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