Cost
and price
Cost of a product is the sum of
all the cost involved in the production of a product ie., production cost,
labour cost and other costs involved.
Where as price of a product is
cost plus profit tat one earn from selling product.
2nd exmp:
·
In plain
english; Cost is what you pay for an item. (wholesale).
·
Price is
what you sell the item for (retail).
Cost price = 1/(profit% + 1) × selling price
II. Formula to find cost price when selling price and loss percent are given;
Cost price = 1/(loss% - 1) × selling price
Scenarios:
We will learn how to find cost price
when selling price and profit or loss are given.
1.
By selling a laptop for $550, a profit of 10% is made. Find its cost price.
Solution:
Let cost price be $100
Profit = 10% of $100
= 10/100 × $100
= $10
And
selling price = $100 + $10 = $110; [we know, selling price = cost price + profit]
When selling
price = $110, cost price = $100
When selling
price = $1, cost price = $100/110
And, when selling price = $550, cost
price = $100/110 × 550
Therefore,
the cost price = $500
2.
By selling an article for $270, a loss of 10% is made. Find the cost price of
the article.
Solution:
Let cost price be $100
Loss = 10% of $100
= 10/100 × $100
= $10
And
selling price = $100 - $10 = $90; [since, selling price = cost price - loss]
When selling
price = $90, cost price = $100
When selling
price = $1, cost price = $100/90
And, when selling price = $270, cost
price = $100/90 × 270
Therefore,
the cost price = $300
More solved examples to find cost price when selling price and
profit or loss are given:
3.
An article was sold for $480 at a profit of 20%. Find the cost price of the
article.
Solution:
Let cost price be $100.
Profit = 20% of $100
= 20/100 × $100
= $20
And selling price = $100 + $20 =
$120; [we know, selling price = cost price + profit]
When selling
price = $120, then cost price = $100.
When selling price = $1, then cost
price = $100/120.
And when selling price = $480, then
cost price = $100/120 × 480
Therefore, the cost price = $400.
4.
A man sold a watch to his friend at a loss of 5%. If his friend paid $190 for
it, find the cost price of the watch.
Solution:
Let cost price be $100.
Loss = 5% of $100
= 5/100 × $100
= $5
And
selling price = $100 - $5= $95; [we know, selling price = cost price + profit]
When selling price = $95, then cost
price = $100
When selling price = $1, then cost
price = $100/95
And when selling price = $190, then
cost price = $100/95 × 190
Therefore, the cost price of the clock is $200.
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