An item listed at 40% above cost was sold by a dealer during a special sale at a 15% reduction from the list price. What did the item cost the dealer if it was sold for $23,765.00?
A) $23,494.81
B) $33,271.00
C) $19,970.59
D) $27,958.82
E) $43,965.25

Question

Quizplus · Accepted Answer

The item was sold for $23,765 after a 15% reduction from the list price. To find the list price, we calculate $23,765 / (1 - 0.15) = $23,765 / 0.85 = $27,958.82. This list price is 40% above the cost, meaning it is 140% of the cost. To find the original cost, we calculate $27,958.82 / 1.4 = $19,970.59.

An Item Listed at 40% Above Cost Was Sold by a Dealer