Calculate Cost Price using Sell Price and Profit Percent

How to calculate cost price using sell price and profit percent?

We know that   cost price = selling price - profit

                      cost price = selling price - profit% × cost price/100

                      cost price + profit% × cost price/100 = selling price

                      cost price(1 - profit%)/100 = selling price

                      cost price(100 + profit%)/100 = selling price

Also, cost price = selling price × 100/100 + profit% (on cross multiplication);

Here, selling price and loss% is known.

Solved examples will help us to find cost price when the selling price and profit% are known:

1. A bag was sold for $324 thereby gaining 8%. Find the cost price of the bag.

Solution:            

Given selling price = $324                            

Gain% = 8%                                                       

We know, cost price = selling price × 100/100 + gain%                    

Therefore, cost price = 324 × 100/100 + 8                             

                             = 324 × 100/108                          

                             = 12 × 25

                             = $300                            

Therefore, the cost price of the bag is $300.

2. A book was sold for $575 thereby gaining 15%. Find the cost price of the book.

Solution:            

Given selling price = $575                            

Gain% = 15%                                                     

We know, cost price = selling price × 100/100 + gain%                    

Therefore, cost price = 575 × 100/100 + 15                           

                             = 575 × 100/115          

                             = 57500/115

                             = $500                            

Therefore, the cost price of the book is $500.    

7th Grade Math Problems

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