Question

On selling a machine at Rs. 16000 with additional charges of Rs. 1500, the seller earns a 25% profit. Find the cost price of the machine for the seller.
1. Rs. 14800
2. Rs. 13500
3. Rs. 14000
4. Rs. 15200

Answer 1

Correct Answer - Option 3 : Rs. 14000

Given:

Selling price of the machine = Rs. 16000

Additional charges = Rs. 1500

Profit earns = 25%

Formula used:

C.P = S.P × 100/(100 + P%)

Where,

C.P → Cost price

S.P → Selling price

P% → Profit%

Calculations:

Total selling price = 16000 + 1500 = Rs. 17500

C.P = 17500 × 100/(100 + 25)

⇒ C.P = 17500 × 100/125

⇒ CP = 14000

∴ The cost price of the machine for the seller is Rs. 14000