Answer: $542
Step-by-step explanation:
Given the following :
Selling price of refrigerator = $677.50
Markup = 25% of dealers' cost
Dealers' cost of refrigerator =?
Selling price = Dealers' cost + markup
Markup = 25% of dealers' cost
Let dealers' cost = d
Hence,
Selling price = d + 25% of d
Selling price = d + 0.25d
Selling price of refrigerator = $677.50
Then,
$677.50 = d + 0.25d
$677.50 = 1.25d
d = $677.50 / 1.25
d = $542
