A shopkeeper sells an item for $80 at a profit of 20%. What was the cost price?

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Question: A shopkeeper sells an item for $80 at a profit of 20%. What was the cost price?

Options:

Correct Answer: $60

Solution:

Let the cost price be x. Selling Price = Cost Price + Profit = x + 20% of x = x + 0.2x = 1.2x. Therefore, 1.2x = 80. x = 80 / 1.2 = 66.67.

A shopkeeper sells an item for $80 at a profit of 20%. What was the cost price?

A shopkeeper sells an item for $80 at a profit of 20%. What was the cost price?

Profit Calculation – Understanding how to calculate profit based on selling price and cost price.
Percentage Application – Applying percentage to determine profit in relation to cost price.
Algebraic Manipulation – Using algebra to solve for the unknown variable (cost price).