Question

If a shopkeeper sells 40 toys at Rs 5 each, he will make a profit of Rs 80. Find the cost price of each toy.

Answer 1

Selling price of 1 toy = Rs 5
∴ Selling price of 40 toys = Rs 5 × 40 = Rs 200

The profit earned by the shopkeeper on selling 40 toys = Rs 80
We know that
Profit = Selling price – Cost price
⇒ Cost price = Selling price – Profit
= Rs 200 – Rs 80
= Rs 120
So, cost price of 40 toys = Rs 120
Cost price of 1 toy $=\mathrm{Rs}\frac{120}{40}=\mathrm{Rs}3$
Hence, cost price of each toy = Rs 3