Profit and Loss — A shop charges 28% above cost. If the customer paid ₹ 8960 for the cell phone (this is the SP), find the Cost Price (CP). Use the markup relation SP = (1 + 28%) * CP.

Introduction / Context:
Markup problems specify the percentage added on CP to quote SP. Recovering CP from SP involves dividing by the markup factor rather than multiplying.

Given Data / Assumptions:

• SP = ₹ 8960
• Markup = 28% above CP
• SP = 1.28 * CP

Concept / Approach:
Rearranging SP = 1.28 * CP gives CP = SP / 1.28. Substitute and compute directly.

Step-by-Step Solution:

Verification / Alternative check:
Check forward: SP = 1.28 * 7000 = 8960, which matches the paid price, validating the computation.

Why Other Options Are Wrong:
₹ 7800, ₹ 6900, ₹ 6850, and ₹ 7200 do not produce SP = ₹ 8960 when marked up by 28%. Only ₹ 7000 satisfies the equation.

Common Pitfalls:
Multiplying SP by 1.28 instead of dividing, or confusing markup on CP with discount on SP. Always identify the correct base.

Final Answer:
₹ 7000