Cost Price \( = \) Rs. 300 and Profit \( = \) Rs. 75

Did you know that the concept of cost price and profit dates back to ancient trading practices? Merchants in Mesopotamia used similar calculations to determine the viability of their trades. They would assess their investments and the returns to ensure they were not selling themselves short—just like how we calculate profit today to keep businesses thriving while keeping financial records spick and span! In the real world, knowing how to calculate profit is crucial for any business! For instance, if you know your cost price is Rs. 300 and you earned a profit of Rs. 75, you can determine your selling price by simply adding the profit to the cost price. This means your selling price would be Rs. 375. It’s essential for entrepreneurs to master these calculations to price their products effectively and ensure profitability in the competitive market!