A supplier supplies cartridges to a newspaper publishing house. He earns a…
2025
A supplier supplies cartridges to a newspaper publishing house. He earns a profit of 20% by selling cartridges for Rs. 540. Find the cost price of the cartridges.
- A.
Rs. 500
- B.
Rs. 480
- C.
Rs. 450
- D.
Rs. 400
Attempted by 1 students.
Show answer & explanation
Correct answer: C
Concept: Cost Price (C.P.), Selling Price (S.P.), and Profit Percent are related by the identity: S.P. = C.P. x (1 + Profit% / 100). When the profit percent and S.P. are known, C.P. can be found by rearranging this identity: C.P. = S.P. / (1 + Profit% / 100).
Let the required Cost Price be C.
Since the profit is 20%, the Selling Price is 120% of the Cost Price: Selling Price = C x 1.20.
The actual Selling Price is given as Rs. 540, so C x 1.20 = 540.
Solving for C: C = 540 / 1.20 = 450.
Cross-check: if C.P. = Rs. 450, a 20% profit adds Rs. 90 (20% of 450), giving S.P. = 450 + 90 = Rs. 540, which matches the given Selling Price.
Hence, the Cost Price of the cartridges is Rs. 450.