Question
Selling price of a toy car is Rs 540 . If the profit made by shopkecper is \( 20 \% \) what is the cost Price of the toy?
Ask by Colon Cook. in India
Feb 20,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The cost price of the toy is Rs 450.
Solution
Let the cost price of the toy be CP. The shopkeeper makes a profit of 20%, which means the selling price (SP) is 120% of CP:
SP = CP + 20% of CP = 1.20 × CP
Given that the selling price is Rs 540, we have:
1.20 × CP = 540
Solve for CP by dividing both sides by 1.20:
CP = 540 / 1.20 = 450
Therefore, the cost price of the toy is Rs 450.
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Simplify this solution The Deep Dive
To find the cost price (CP) of the toy car, you can use the formula: Selling Price (SP) = Cost Price (CP) + Profit. Since the profit is 20% of the cost price, we can express it as 0.20 * CP. So the equation becomes SP = CP + 0.20 * CP or SP = 1.20 * CP. Given that the SP is Rs 540, you can rearrange the equation to find CP: CP = SP / 1.20 = 540 / 1.20 = Rs 450. Therefore, the cost price of the toy car is Rs 450.
