# Calculating List Price

• Oct 20th 2011, 10:33 AM
jaunty
Calculating List Price
Guys I've started maths after a long time so having a few problems here.

I have a question,

A wholesaler wants to establish a list price for an item so that his selling price gives a trade discount of 10% for the list price. If he makes a mark up of 20% of this selling price and if his cost is \$160 what list price should be established.

Selling price = list price - selling price * 10%

Cost = 160

Also selling price = 160 + 160 * 20%
SP = 192

So we can solve the first eq:

192 = lp - (192 * 10/100)

192 + 19.2 = lp

LP = 211.2
• Oct 20th 2011, 06:16 PM
Deveno
Re: Calculating List Price
selling price = list price - list price*0.1 <--this is the correct equation.

selling price = cost + cost*0.2 <-- he marks up his cost 20% to establish his selling price.

SP = \$192.

192 = LP - 0.1LP = 0.9LP

LP = 192/0.9 = \$213.33 <-- this is the list price the wholesaler should establish.

a 10% discount for this price is \$21.33 off, for a sell price of \$192.

what you have done is calculate a 10% markup of his selling price.
• Oct 21st 2011, 12:09 AM
jaunty
Re: Calculating List Price
Thanks, yes. 213.33 :).