To find the cost price (CP) of the article, we can use the formula for calculating the selling price (SP) based on the cost price and the profit percentage.
The formula is:
SP = CP + Profit
We know that profit is calculated as:
Profit = (Profit Percentage / 100) × CP
Given, the selling price (SP) is Rs 495 and the profit percentage is 10%, we can substitute these values into our formulas.
First, let’s express the profit:
Profit = (10 / 100) × CP = 0.1 × CP
Now, substituting this back into the selling price formula gives:
495 = CP + 0.1 × CP
This simplifies to:
495 = 1.1 × CP
To find the cost price, we rearrange this equation:
CP = 495 / 1.1
Calculating that yields:
CP = 450
Therefore, the cost price of the article is Rs 450.