The price was reduced by one-sixth, so the $725 is five sixths of the original price.
ONE sixth is 1/5 of FIVE sixths; if five sixths of the original price was $725, then one sixth of the original price was 1/5 of $725, which is $725/5 = $145.
So the price was reduced by $145; therefore the original price was $725+$145 = $870.
And one of many formal algebraic methods....
Instead of working with the "one sixth" that is the amount of the price reduction, work with the "five sixths" of the original price that remains.
x = original price
5/6 of the original price is $725:
To solve for x, multiply both sides of the equation by the reciprocal, 6/5: