Question

Selling price of a chair is Rs 300 , with a profit of 25 %. Find its cost price.​

Answer 1

Step-by-step explanation:

Let's see what we have here. A shopkeeper sold Item X for a his selling price (SP).

Let SP = x

Since the question says that Profit is 25% of the selling price, we have:

Profit = 25% SP = 0.25x

Now, we already know that:

Profit = SP - Cost

This part is the catch. To find out how much Item X originally cost, 

Cost = SP - Profit = x - 0.25x = 0.75x

Now that we know the original cost of Item X, we can easily calculate the Real profit % using this formula:

= (Profit/Cost)*100 

= (0.25x/0.75x)*100

= 33%