The selling price of a toy car is ₹540. If the profit made by shopkeeper is 20%, what will be the cost price of this toy car?

Correct option is C

Given:

Selling Price (SP) = ₹540

Profit Percentage = 20%

Formula Used:

SP = $$CP \times \left(1 + \frac{\text{Profit\%}}{100}\right)$$​​

Solution:

CP = $$\frac{540}{1 + \frac{20}{100}} = \frac{540}{1.20}$$​ = ₹450