How to Calculate Cost Price from Selling Price and Profit?
Formula to Calculate Cost Price (CP):
CP = Selling Price (SP) - Profit
Example Calculation:
Let's consider an example where wheat is being sold at Rs. 1550 per bag of 25 kg at a profit of Rs. 150.
Given:
Selling Price (SP) = Rs. 1550
Profit = Rs. 150
Calculation:
CP = SP - Profit
CP = Rs. 1550 - Rs. 150
CP = Rs. 1400
Conclusion:
The cost price of the wheat bag is found by subtracting the profit of Rs. 150 from the selling price of Rs. 1550, resulting in a cost price of Rs. 1400.