Question

If selling price of an article is $Rs420$and profit is $20\%$. Find its cost price.

Answer 1

Find the cost price:

As it is given that the Selling price of an article is $Rs420$ and profit is $20\%$

Let the cost price be $x$ and also we have

$\mathrm{Profit}\%=20\%$

$$\begin{gathered} Profit=ProfitpercentofC.P \\ =20\%\times x \\ =\frac{20}{100}\times x \\ =0.2x \end{gathered}$$

$SP=CP+Profit$

$SP=x+0.2x$

$SP=1.2x$

We are given that the selling price of an article is $Rs420$

So, $1.2x=420$

$$\begin{gathered} x=\frac{420}{1.2} \\ =350 \end{gathered}$$

$\therefore X=C.P=Rs350$

Hence, the cost price is $Rs.350$.