Question

Whats the Formula for finding the cost price?

Answer 1

cost price = selling price - profit

cost price = selling price - profit% × cost price/100

cost price + profit% × cost price/100 = selling price

cost price(1 - profit%)/100 = selling price

cost price(100 + profit%)/100 = selling price

Also, cost price = selling price × 100/100 + profit% (on cross multiplication)
example

1. A bag was sold for $324 thereby gaining 8%. Find the cost price of the bag.

Solution:

Given selling price = $324

Gain% = 8%

We know, cost price = selling price × 100/100 + gain%

Therefore, cost price = 324 × 100/100 + 8

= 324 × 100/108

= 12 × 25

= $300

Therefore, the cost price of the bag is $300.