Cost price from a 10% profit — Aptitude Question
Cost price from a 10% profit: An article sold for ₹27.50 yields a profit of 10%. What was the cost price? Answer and worked solution on CodeKairo.
- Topic: Profit & Loss
- Section: Quantitative Aptitude
- Difficulty: Easy
- Time target: 45 seconds
Question
An article sold for ₹27.50 yields a profit of 10%. What was the cost price?
Options
- ₹22.50
- ₹24.75
- ₹25.00
- ₹25.50
Show the answer and the worked solution
Correct answer: C. ₹25.00
Worked solution
- CP × 1.10 = 27.50.
- CP = 27.50 ÷ 1.10 = ₹25.00.
Answer: ₹25.00.
The idea
Going from SP back to CP is a division by (1 + profit/100). Subtracting 10% of the selling price instead gives 24.75, which is offered as the trap.
Shortcut. A 10% profit makes SP = 11/10 of CP, so CP = 27.50 × 10/11; 27.50 ÷ 11 = 2.50, and ten of those is ₹25.00.
Common trap. "₹24.75" — subtracting 10% of the selling price (2.75) from 27.50, when the 10% is of the cost.