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.

Question

Solve this multiple-choice question and choose the correct option.

Accepted Answer

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: CP = 8960 / 1.28Compute: 8960 / 1.28 = 7000Therefore, CP = ₹ 7000 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

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.

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