How to Calculate Cost Price from Selling Price and Profit?

What is the method to calculate the cost price when given the selling price and profit? The method to calculate the cost price from the selling price and profit involves a simple formula. The cost price (CP) can be found by subtracting the profit from the selling price. This formula is represented as:

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.

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