A shopkeeper sells an article for Rs. 800, making a profit of 20%. What was the

A shopkeeper sells an article for Rs. 800, making a profit of 20%. What was the cost price of the article? (2020)

A shopkeeper sells an article for Rs. 800, making a profit of 20%. What was the cost price of the article? (2020)

Step 1: Understand that the selling price (SP) of the article is Rs. 800.
Step 2: Know that the profit made is 20% of the cost price (CP).
Step 3: Let the cost price be represented as 'x'.
Step 4: Calculate the profit in terms of 'x': Profit = 20% of x = 0.20x.
Step 5: The selling price can be expressed as: SP = CP + Profit, which means 800 = x + 0.20x.
Step 6: Combine the terms on the right side: 800 = 1.20x.
Step 7: To find 'x', divide both sides by 1.20: x = 800 / 1.20.
Step 8: Calculate the value: x = 666.67.

Profit Calculation – Understanding how to calculate cost price from selling price and profit percentage.