If the markup is 20% and the selling price is $45.00, what is the initial price

Given data:

markup = 20 %

selling price = $45.00

Initial price = ?

Solution:

As we now Selling price = 100% initial cost + 20% of initial cost

                                       $45.00   = 120%

                                           120% = $45.00

                                               1% = 45/120

                                                     = 0.375

                         100% initial cost = 0.375 * 100 = 37.5

                                               Initial cost = 37.5