If a man sells an article for $150 at a profit of 20%, what was the cost price?

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Question: If a man sells an article for $150 at a profit of 20%, what was the cost price?

Options:

Correct Answer: $125

Solution:

Let the cost price be x. Selling Price = Cost Price + Profit = x + 0.2x = 1.2x. 1.2x = 150, x = 150/1.2 = 125.

If a man sells an article for $150 at a profit of 20%, what was the cost price?

If a man sells an article for $150 at a profit of 20%, what was the cost price?

Step 1: Understand that the selling price (SP) is $150.
Step 2: Know that the profit is 20% of the cost price (CP).
Step 3: Let the cost price be represented as 'x'.
Step 4: Calculate the profit: 20% of x is 0.2x.
Step 5: The selling price is the cost price plus profit: SP = CP + Profit, which means 150 = x + 0.2x.
Step 6: Combine the terms on the right side: 150 = 1.2x.
Step 7: To find x (the cost price), divide both sides by 1.2: x = 150 / 1.2.
Step 8: Calculate the value: x = 125.

Profit Calculation – Understanding how to calculate profit based on selling price and cost price.
Percentage Application – Applying percentage increase to determine the relationship between cost price and selling price.