Calculating Cost Price

We will learn how to solve different types of problems on calculating cost price.

Formulas to calculate cost price:

(i) If Selling Price of an article and gain on its selling are given, the Cost Price of the article will be Selling Price minus gain.

Cost Price = Selling Price - Gain

(ii) If Selling Price of an article and loss on its selling are given, the Cost Price of the article will be Selling Price plus loss.

Cost Price = Selling Price + Loss

Solved examples:

1. A merchant sold a table fan for $375 at a loss of$ 50. Find the Cost Price of a fan.

Selling Price of the fan   = $375 Loss =$ 50

Cost Price                     = Selling Price + Loss

= $(375 + 50) =$ 425.00

Therefore, the Cost Price of a fan is $425.00. 2. A book seller bought 12 copies of a book. He sold each of them at$ 20 and thus made a profit of $24 by selling all the books. What was the Cost Price of a book? Selling Price of the book =$ 20 × 12

= $240 Profit =$ 24

Cost Price                          = Selling Price - Profit

= $(240 - 24) =$ 216.

Thus, cost of 12 books   = $216 Cost of 1 book =$ 216 ÷ 12

= $18 Therefore, the Cost Price of a book is$ 18.

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