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

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

Options:

Correct Answer: $240

Solution:

Let Cost Price = x. Selling Price = x + 25% of x = 1.25x. 1.25x = 300. x = 300/1.25 = 240.

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

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

Step 1: Understand that the Selling Price (SP) is $300.
Step 2: Know that the profit is 25% of the Cost Price (CP).
Step 3: Write the relationship between Selling Price and Cost Price: SP = CP + Profit.
Step 4: Since Profit is 25% of CP, we can express it as Profit = 0.25 * CP.
Step 5: Substitute the Profit into the equation: SP = CP + 0.25 * CP.
Step 6: Combine the terms: SP = 1.25 * CP.
Step 7: Set the Selling Price equal to $300: 1.25 * CP = 300.
Step 8: To find CP, divide both sides by 1.25: CP = 300 / 1.25.
Step 9: Calculate the Cost Price: CP = 240.

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