Points to Remember:
- Cost Price (CP): The original price at which the shopkeeper bought the chair.
- Selling Price (SP): The price at which the shopkeeper sold the chair (â¹1564).
- Loss: The difference between the CP and SP, representing a decrease in value.
- Loss Percentage: The percentage of the CP that represents the loss (15%).
Introduction:
This is a mathematical problem requiring a factual approach to determine the cost price of a chair given its selling price and the percentage loss incurred. The problem involves understanding the relationship between cost price, selling price, and percentage loss. Profit and loss calculations are fundamental in business and commerce to determine pricing strategies and assess profitability.
Body:
Understanding Loss Percentage:
Loss percentage is calculated as: [(CP – SP) / CP] * 100 = Loss Percentage
In this case, we know the selling price (SP = â¹1564) and the loss percentage (15%). We need to find the cost price (CP).
Calculating the Cost Price:
Let’s represent the cost price as ‘x’. The loss is 15% of x, which can be written as 0.15x. The selling price is the cost price minus the loss:
x – 0.15x = 1564
Simplifying the equation:
0.85x = 1564
Solving for x (the cost price):
x = 1564 / 0.85
x = â¹1840
Therefore, the cost price of the chair is â¹1840.
Verification:
To verify our answer, let’s calculate the loss:
Loss = CP – SP = â¹1840 – â¹1564 = â¹276
Loss Percentage = (Loss / CP) * 100 = (276 / 1840) * 100 = 15%
This confirms our calculation of the cost price.
Conclusion:
By applying the formula for loss percentage and solving the resulting equation, we determined that the cost price of the chair was â¹1840. The shopkeeper suffered a loss of â¹276 (15% of the cost price) by selling the chair for â¹1564. Accurate cost price calculations are crucial for businesses to manage their finances effectively, set appropriate selling prices, and ensure profitability. Understanding these basic principles of profit and loss is essential for sound financial management and sustainable business practices.
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