A product is sold at a profit of 30%. If the selling price is $130, what was the

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Question: A product is sold at a profit of 30%. If the selling price is $130, what was the cost price?

Options:

Correct Answer: $100

Solution:

Let the cost price be x. Selling Price = x + 30% of x = 1.3x. Thus, 1.3x = 130, so x = 100.

A product is sold at a profit of 30%. If the selling price is $130, what was the cost price?

A product is sold at a profit of 30%. If the selling price is $130, what was the cost price?

Step 1: Understand that the selling price is the cost price plus the profit.
Step 2: Let the cost price be represented by 'x'.
Step 3: Since there is a profit of 30%, the selling price can be expressed as 'x + 30% of x'.
Step 4: 30% of x can be written as 0.3x, so the selling price becomes 'x + 0.3x'.
Step 5: Combine the terms: 'x + 0.3x' equals '1.3x'.
Step 6: We know the selling price is $130, so we set up the equation: '1.3x = 130'.
Step 7: To find 'x', divide both sides of the equation by 1.3: 'x = 130 / 1.3'.
Step 8: Calculate the value: 'x = 100'.
Step 9: Therefore, the cost price is $100.

Profit Calculation – Understanding how to calculate cost price from selling price and profit percentage.
Algebraic Manipulation – Using algebra to solve for the unknown variable (cost price) in an equation.