A business incurs a loss of 15% on selling a product for $425. What was the cost

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Question: A business incurs a loss of 15% on selling a product for $425. What was the cost price?

Options:

Correct Answer: $500

Solution:

Let the cost price be x. Selling Price = Cost Price - Loss = x - 0.15x = 0.85x. Therefore, 0.85x = 425, x = 425 / 0.85 = $500.

A business incurs a loss of 15% on selling a product for $425. What was the cost price?

A business incurs a loss of 15% on selling a product for $425. What was the cost price?

Step 1: Understand that a loss of 15% means the selling price is 85% of the cost price.
Step 2: Let the cost price be represented by 'x'.
Step 3: Write the equation for selling price: Selling Price = Cost Price - Loss.
Step 4: Since the loss is 15%, we can express it as: Selling Price = x - 0.15x.
Step 5: Simplify the equation: Selling Price = 0.85x.
Step 6: We know the selling price is $425, so we can set up the equation: 0.85x = 425.
Step 7: To find 'x', divide both sides of the equation by 0.85: x = 425 / 0.85.
Step 8: Calculate the value: x = 500.
Step 9: Therefore, the cost price is $500.

Loss Percentage Calculation – Understanding how to calculate the cost price when given the selling price and the percentage loss.
Algebraic Manipulation – Using algebra to isolate variables and solve for the cost price.