Question

By selling a laptop for €1150, a store makes a profit of 25%.

(i) What did the store pay for the laptop?
(ii) At what price should the laptop be sold to make a profit of 20%?​

Answer 1

The cost price of the laptop is €920 and to make a profit of 20%, the laptop should be sold for €1104.

Step-by-step explanation:

(i) To find the cost price of the laptop, we need to find the original price before the profit was added. The profit is 25% of the selling price, so we can set up the equation:

Selling Price = Cost Price + Profit

1150 = Cost Price + (0.25 * Cost Price)

1150 = Cost Price + 0.25 * Cost Price

1150 = (1 + 0.25) * Cost Price

1150 = 1.25 * Cost Price

Cost Price = 1150 / 1.25 = €920

(ii) To find the selling price to make a profit of 20%, we use the same equation:

Selling Price = Cost Price + Profit

Let's assume the selling price is X:

X = Cost Price + 0.2 * Cost Price

X = 1.2 * Cost Price

X = 1.2 * 920 = €1104

Therefore, the laptop should be sold for €1104 to make a profit of 20%.