A shopkeeper sells a shirt for $30, making a profit of 20%. What was the cost pr

A shopkeeper sells a shirt for $30, making a profit of 20%. What was the cost price of the shirt?

A shopkeeper sells a shirt for $30, making a profit of 20%. What was the cost price of the shirt?

Step 1: Understand that the selling price of the shirt is $30.
Step 2: Know that the profit made is 20%. This means the selling price is 120% of the cost price.
Step 3: Let the cost price be represented by 'x'.
Step 4: Write the equation for the selling price: Selling Price = Cost Price + Profit.
Step 5: Since the profit is 20% of the cost price, we can express this as: Selling Price = x + 0.2x.
Step 6: Combine the terms: Selling Price = 1.2x.
Step 7: Set the equation equal to the selling price: 1.2x = 30.
Step 8: To find 'x', divide both sides of the equation by 1.2: x = 30 / 1.2.
Step 9: Calculate the value: x = 25.
Step 10: Conclude that the cost price of the shirt is $25.

Profit Calculation – Understanding how to calculate the cost price from the selling price and profit percentage.
Algebraic Manipulation – Setting up and solving equations to find unknown values.