Question

Find the cost price of an article which is sold at INR 720, at profit of 12.5%.
1. INR 640
2. INR 620
3. INR 650
4. INR 600

Answer 1

Correct Answer - Option 1 : INR 640

Given:

Selling price of article = INR 720

Profit earned = 12.5%

Calculation:

12.5% = 12.5 × 1/100 = 1/8

That is, if CP = 8x, profit earned = 1x

And thus, SP = CP + profit = 9x = INR 720

⇒ x = INR 80

⇒ Cost price of article = 8x = 80 × INR 80

∴ Cost price of article is INR 640