Question

Selling price of a toy car is Rs. 540. If the profit made by the shopkeeper is 20%, what is the cost price of this toy?

Answer 1

Given: SP = Rs. 540 and the Profit = 20%.

20% profit will mean if CP is Rs. 100, profit is Rs. 20.

Therefore, SP = 100 + 20 = 120

Now, when SP is Rs. 120, then CP is Rs. 100.

Therefore, when SP is Rs. 540,

Then CP = `100/120 xx 540` = Rs. 450.

Answer 2

Given: SP = Rs. 540 and the Profit = 20%.

Profit = 20% of CP and SP = CP + Profit

So, 540 = CP + 20% of CP

= CP + `20/100 xx "CP" = [1 + 1/5]"CP"`

= `6/5 "CP"`.

Therefore, `540 xx 5/6` = CP or Rs. 450 = CP