Question

By selling a grand piano for $4200,a dealer gains 5%. if the transportation cost of the piano was $100, find the purchasing cost of the piano.

Thank you for your help. I know that the correct answer is 3900 dollars, but i need the step by step explanation.

Answer 1

Answer:

First we reduce the transportation cost from the SP of piano so the remaining money will be $4100

Step-by-step explanation:

so the gain on $4100 is $205 and if we reduce the amount of gain we get $3895 that's the answer

Answer 2

Step-by-step explanation:

S. P = $4200

Gain = 5%

Transportation cost = $100

$cp = \frac{sp \times 100}{100 + gain\%}$

$cp = \frac{4200 \times 100}{100 + 5}$

$cp = \frac{4200 \times 20}{21}$

$cp = \frac{4200 \times 100}{105}$

$cp = 200 \times 20$

$cp = 4000$

Now,

Total C.P = $4000

Overhead expenses = $100

CP of piano = (4000-100) =3900