Involve markup, the amount added to the dealer's cost of an...

Involve markup, the amount added to the dealer's cost of an item to arrive at the selling price of that item. The selling price of a scientific calculator is 15 dollar If the markup is $25 \%$ of the dealer's cost, what is the dealer's cost of the calculator?

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Key Concepts

Markup

Markup refers to the additional amount or percentage added to the dealer's cost of an item to determine its selling price. It is essentially the profit margin that covers overheads and provides profit for the seller. In this context, a 25% markup means that the extra amount is 25% of the dealer's cost.

Dealer's Cost

Dealer's cost is the amount a dealer pays to acquire an item from the supplier. It serves as the baseline for calculating the markup and eventually determining the selling price. Understanding the difference between the dealer's cost and the selling price is crucial for calculating profit margins.

Selling Price

The selling price is the final amount at which an item is sold to the customer. It is calculated by adding the markup to the dealer's cost. In problems like this, knowing either the selling price or the dealer's cost, along with the markup percentage, enables one to set up equations to find the missing value.

Percentage Calculation

Percentage calculation is a method used to determine proportions in relation to a whole. In the context of markups, the percentage is applied to the dealer's cost to determine how much should be added to achieve the selling price. It involves operations such as multiplication and division to accurately reflect the proportionate change.

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