Question

Joy sold a dress for sh. 840 and made a profit of 20%profit what was the buying price of the dress

Answer 1

Answer:

The buying price (cost price) of the dress = sh. 700

Explanation:

CP = Cost Price = ?

SP = Selling Price = 840

P% = Profit% = 20

P% = 100* [(SP - CP) / CP]

      = 100*[(SP/CP) - 1]

Substituting, we get:

20 = 100*[(840/CP) - 1}

(840/CP) - 1 = 0.20

(840/CP) = 1.20

CP = 840 / 1.20

CP = 700

Cost price or buying price of the dress is sh. 700

Note: Profit % is nothing but profit expressed as a percentage of the cost price. You may remember the following formulae:

P% = 100*[(SP - CP)/CP}

SP = CP*(1 + P%)

CP = SP/(1 + P%)