A customer just paid \( \$ 35,620 \) for a delivery van. If the percent markup based on cost is \( 40 \% \) what was the cost? select one: a. \( \$ 27,400.00 \) o b. \( \$ 24,934.00 \) o c. \( \$ 25,442.86 \) o d. \( \$ 20,741.18 \)

To find the cost before the markup, we use the formula for markup: Selling Price = Cost + (Markup Percentage × Cost). Letting Cost = \( C \), we then have: \[ 35,620 = C + (0.40 \times C) \] \[ 35,620 = C(1 + 0.40) \] \[ 35,620 = C(1.40) \] \[ C = \frac{35,620}{1.40} \] \[ C = 25,442.86 \] So, the cost of the delivery van was \( \text{\$ 25,442.86} \). ✔️ The correct answer is c. \( \$ 25,442.86 \). Did you know that understanding markup and cost pricing is crucial for successful businesses? It helps determine whether your products are priced competitively or if you need to adjust your strategy! In the retail world, many businesses fall into the trap of incorrectly calculating their costs and markup percentages, resulting in underpricing or overpricing their products. Always double-check your calculations and consider all costs involved to set the right price!