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Example 13 Selling price of a toy car is Rs 540. If the profit made by shopkeeper is 20%, what is the cost price of this toy? S.P = Rs 540 C.P = ? Profit percentage = 20% Now, Profit = S.P − C.P Profit = 540 − C.P Also, Profit percentage = 20% 𝑃𝑟𝑜𝑓𝑖𝑡/(𝐶.𝑃) × 100 = 20 (𝟓𝟒𝟎 − 𝑪.𝑷)/(𝑪.𝑷) × 100 = 20 (540 − 𝐶.𝑃)/(𝐶.𝑃) = 20/100 (540 − 𝐶.𝑃)/(𝐶.𝑃) = 2/10 (𝟓𝟒𝟎 − 𝑪.𝑷)/(𝑪.𝑷) = 𝟏/𝟓 Cross Multiplying 5 × (540 − CP) = 1 × CP 2700 – 5 CP = CP 2700 = 6CP 6CP = 2700 CP = 𝟐𝟕𝟎𝟎/𝟔 CP = 900/2 CP = Rs 450 So, Cost Price is Rs 450

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.