A client just paid \( \$ 60,000 \) for a diamond necklace. If the percent markup based on cost is \( 125 \% \), what was the cost? Select one: a a. \( \$ 20,000.00 \) ob. \( \$ 18,837.21 \) o c. \( \$ 36,500.00 \) o d. \( \$ 26,666.67 \)

To find the cost of the necklace before the markup, we can use the formula: Selling Price = Cost + Markup. Given a 125% markup based on cost, the markup can be expressed as \(1.25 \times \text{Cost}\). Therefore, the equation becomes: \[ 60,000 = \text{Cost} + 1.25 \times \text{Cost} \] This can be simplified to: \[ 60,000 = 2.25 \times \text{Cost} \] Now, solving for Cost gives us: \[ \text{Cost} = \frac{60,000}{2.25} \approx 26,666.67 \] Thus, the cost of the diamond necklace is \( \$ 26,666.67 \), making option d the correct answer! Isn’t it fascinating how markup percentages can transform the final price? Knowing the cost provides a better understanding of the retailer's pricing strategies. When shopping for luxury items, it's always good to have this knowledge up your sleeve! If you want to dive deeper into pricing strategies, consider exploring economic theories related to consumer behavior. Understanding supply and demand can give you valuable insights!