Thread: 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

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.

Thanks, yes. 213.33 .