A vendor sells an item for ₱1,120, which is 12% above its cost. What was the cost?
Correct answer: B. ₱1,000
If the selling price is 112% of the cost, then cost = 1,120 ÷ 1.12 = ₱1,000. Taking 12% of ₱1,120 and subtracting (giving ₱985.60) is wrong, because the markup is based on cost.
hard