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 Math Central Quandaries & Queries
 Question from Arron: I have the retail price of $45.50. This price reflects a gross profit margin of 47%. How do I calculate the original cost of the item? Hi Arron, If the profit margin is$47\%$then the profit is 47% of the price the retail customer pays for the item. Thus the profit margin is$47\%$of$\$45.50.$ Hence you can calculate the profit margin by $0.47 \times \$45.50$and then subtract this from$\$45.50$ to find the original cost.

Penny

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