Which question are you referring to?
If it is Question 5, since the profit is 20% of the cost the selling price must be 100% + 20% = 120% of the cost.
Therefore the target cost must be 600/120% = $500.

It took my brain a while to figure out that reverse mathematical operation! I was only convinced when I realized that 20% of 500 (the unknown cost price) is 100 and when added gives us that 600 sale price. Defeated by math…
Posted for anyone else coming here to figure it out.

renelledominique says

I was very confused about the 100. Still a little unsure

John Moffat says

Which question are you referring to?

If it is Question 5, since the profit is 20% of the cost the selling price must be 100% + 20% = 120% of the cost.

Therefore the target cost must be 600/120% = $500.

melclarke says

It took my brain a while to figure out that reverse mathematical operation! I was only convinced when I realized that 20% of 500 (the unknown cost price) is 100 and when added gives us that 600 sale price. Defeated by math…

Posted for anyone else coming here to figure it out.

daveodipo says

For sure. I think the vocabulary is just as important!

Esther10 says

Thanks for the lecture and the questions

etm97 says

Oh yeah! ?%

SSEMENGO says

This was perfect am probably progressing i got 100%.despite being average in chapt.1 Thank you Open tuition.

ythomas says

Hi, I’m confused by question 5..

Is it possible you can do a breakdown?

John Moffat says

The selling price is $600.

For the profit to be 20% of the cost, the cost needs to be 100/120 x $600 = $500, and this is therefore the target cost.

The estimated cost is actually $520, and therefore the cost gap is 520 – 500 = $20.

Ibrahim2691 says

I hope am making a progress

anisnajihah99 says

Thank youu for the quiz . I got 8% . My mistake at Q5 , i think the markup is markup cost ??

John Moffat says

The mark-up is the profit as a % of the cost.