If a product is sold for $240 after a profit of 20%, what was the cost price?

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Question: If a product is sold for $240 after a profit of 20%, what was the cost price?

Options:

Correct Answer: $200

Solution:

Let CP = x. Then, 240 = x + 0.2x => 240 = 1.2x => x = 240/1.2 = $200.

If a product is sold for $240 after a profit of 20%, what was the cost price?

If a product is sold for $240 after a profit of 20%, what was the cost price?

Step 1: Understand that the selling price (SP) is $240 and the profit is 20%.
Step 2: Let the cost price (CP) be represented as 'x'.
Step 3: Since there is a 20% profit, the selling price can be expressed as CP plus 20% of CP. This means SP = CP + 20% of CP.
Step 4: Rewrite the equation using 'x': SP = x + 0.2x.
Step 5: Combine the terms: SP = 1.2x.
Step 6: Substitute the selling price into the equation: 240 = 1.2x.
Step 7: To find 'x', divide both sides of the equation by 1.2: x = 240 / 1.2.
Step 8: Calculate the value: x = 200.
Step 9: Conclude that the cost price (CP) is $200.

Profit Calculation – Understanding how to calculate the cost price from the selling price and profit percentage.
Algebraic Manipulation – Using algebra to isolate variables and solve for the cost price.