A bicycle is sold for $300 at a profit of 25%. What was the cost price of the bi

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Question: A bicycle is sold for $300 at a profit of 25%. What was the cost price of the bicycle?

Options:

Correct Answer: $240

Solution:

Let the cost price be x. Selling Price = Cost Price + Profit = x + 0.25x = 1.25x. So, 1.25x = 300. Therefore, x = 300/1.25 = 240.

A bicycle is sold for $300 at a profit of 25%. What was the cost price of the bicycle?

A bicycle is sold for $300 at a profit of 25%. What was the cost price of the bicycle?

Step 1: Understand that the selling price of the bicycle is $300.
Step 2: Know that the profit is 25% of the cost price.
Step 3: Let the cost price be represented as 'x'.
Step 4: Calculate the profit in terms of 'x': Profit = 25% of x = 0.25x.
Step 5: The selling price is the cost price plus the profit: Selling Price = Cost Price + Profit = x + 0.25x.
Step 6: Combine the terms: Selling Price = 1.25x.
Step 7: Set up the equation: 1.25x = 300.
Step 8: Solve for 'x' by dividing both sides by 1.25: x = 300 / 1.25.
Step 9: Calculate the value: x = 240.
Step 10: Conclude that the cost price of the bicycle is $240.

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