A shopkeeper sells a product for Rs. 720, gaining 20%. Find the cost price. MCQ with Answer and Explanation

Explanation:
Let profit percentage be P. A's profit = P% of 1800. B's Cost Price = 1800 / (1 + P/100). B's profit = 1800 - [1800 / (1 + P/100)]. If P = 33.33% (1/3), A's profit = 1800 * (1/3) = 600. B's profit = 1800 - (1800 / (4/3)) = 1800 - 1350 = 450. Difference = 600 - 450 = 150. Claimed profit percentage = 33.33%.

Explanation:
SP = 500*1.2 = 600. MP = 600 / 0.85 = 705.88.

Explanation:
SP = 90% of 800 = 720. Profit is 20%, so SP = 1.2 * CP. 1.2 * CP = 720. CP = 720 / 1.2 = Rs. 600.