The selling price of a table is Rs. 6875. If the profit percentage is 25 percent, then what is the cost price of the table?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 3 i.e. Rs. 5500.
Selling Price = Rs. 6875
Profit Percentage = 25%
Selling Price = Cost Price × (1 + Profit%/100)
⇒ 6875 = Cost Price × (1 + 25/100)
⇒ 6875 = Cost Price × 1.25
⇒ Cost Price = 6875/1.25
⇒ Cost Price = 5500
Thus, the cost price of the table is Rs. 5500.