Correct Answer - Option 4 : Rs. 300.00
Given:
Selling Price of article = Rs.375
Profit = 1/4 of Cost Price
Formula used:
Profit = Selling Price - Cost Price
⇒ Cost Price = Selling Price - Profit
Calculation:
Let the cost price be = 4a
⇒ Profit = 4a × 1/4
⇒ a
Profit = 375 - 4a
⇒ a = 375 - 4a
⇒ 5a = 375
⇒ a = 375/5 = 75
⇒ 4a = 4 × 75 = 300
∴ The cost price of the article is Rs.300.