A man sells a bicycle for $300 at a profit of 20%. What was the cost price of th

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Question: A man sells a bicycle for $300 at a profit of 20%. What was the cost price of the bicycle?

Options:

Correct Answer: $240

Solution:

Let Cost Price = x. Selling Price = x + 20% of x = 1.2x. 1.2x = 300. x = 300/1.2 = 250.

A man sells a bicycle for $300 at a profit of 20%. What was the cost price of the bicycle?

A man sells a bicycle for $300 at a profit of 20%. What was the cost price of the bicycle?

Step 1: Let the cost price of the bicycle be represented as 'x'.
Step 2: The selling price is given as $300.
Step 3: The profit is 20%, which means the selling price is 120% of the cost price.
Step 4: We can express this as an equation: Selling Price = Cost Price + Profit.
Step 5: In terms of 'x', this is: 300 = x + 0.2x.
Step 6: Combine the terms on the right side: 300 = 1.2x.
Step 7: To find 'x', divide both sides of the equation by 1.2: x = 300 / 1.2.
Step 8: Calculate the value: x = 250.

Profit Calculation – Understanding how to calculate profit percentage and its impact on selling price.
Algebraic Manipulation – Using algebra to solve for the cost price based on the selling price and profit percentage.