# The selling price of a refrigerator, is $644.40. If the markup is 20% of the dealer's cost, what... ## Question: The selling price of a refrigerator, is$644.40.

If the markup is 20% of the dealer's cost, what is the dealer's cost of the refrigerator?

## Markup:

Markup is the amount of money that is added to the original cost or price of a good or service in order to cover the operational cost of the business and make a profit.

Let the dealer's cost be {eq}X {/eq}. If the markup is 20% of the dealer's cost and the selling cost is $644.40, then: • {eq}644.40 = \dfrac{120}{100}X {/eq} • {eq}X = \dfrac{100\times 644.40}{120} = \boxed{\$537} {/eq}