Question

Kazito sold an item for sh 4950 and made a 12 ¹/2profit.what was the cost price of the item?​

Answer 1

`Cost\ Price = 4331.25`

Explanation:

Given

Selling Price = Sh. 4950

Profit = 12.5%

Required

Determine the cost price

Profit is calculated as:

`Profit = (Selling\ Price - Cost\ Price)/(Selling\ Price) * 100\%`

Substitute values for Selling Price and Profit

`12.5\% = (4950 - Cost\ Price)/(4950) * 100\%`

Cross Multiply:

`4950 * 12.5\% = (4950 - Cost\ Price) 100\%`

`(4950 * 12.5\%)/(100\%) = (4950 - Cost\ Price)`

`618.75 = (4950 - Cost\ Price)`

Collect Like Terms

`Cost\ Price = 4950 - 618.75`

`Cost\ Price = 4331.25`

Hence, the cost price of the item is: Sh. 4331.25