To calculate the cost when the selling price and percent markup based on the selling price are known, use the formula:

Cost = Percent Markup on Selling Price(100% - Selling Price)

Question

To calculate the cost when the selling price and percent markup based on the selling price are known, use the formula:
​
Cost = Percent Markup on Selling Price(100% - Selling Price)​

Quizplus · Accepted Answer

The correct formula to calculate the cost when the selling price and percent markup based on the selling price are known is: Cost = Selling Price / (1 + Percent Markup on Selling Price). The provided formula incorrectly suggests subtracting the selling price from 100%, which is not how markup calculations are performed.

To Calculate the Cost When the Selling Price and Percent