If a product is marked at $200 and sold at a 10% profit, what is the cost price?
Practice Questions
Q1
If a product is marked at $200 and sold at a 10% profit, what is the cost price?
$150
$160
$180
$190
Questions & Step-by-Step Solutions
If a product is marked at $200 and sold at a 10% profit, what is the cost price?
Correct Answer: 181.82
Step 1: Understand that the product is sold at a 10% profit. This means the selling price is 110% of the cost price.
Step 2: Let the cost price be represented by 'x'.
Step 3: Write the equation for the selling price: Selling Price = Cost Price + Profit. Since the profit is 10% of the cost price, we can say Selling Price = x + 0.1x = 1.1x.
Step 4: We know the selling price is $200, so we can set up the equation: 1.1x = 200.
Step 5: To find 'x', divide both sides of the equation by 1.1: x = 200 / 1.1.
Step 6: Calculate the value: x = 181.82.
Profit Calculation – Understanding how to calculate cost price from selling price and profit percentage.
Percentage Application – Applying percentage increase to determine the relationship between cost price and selling price.
