dealer sells a mobile phone at a profit of 25%. The customer sells it to a friend at ksh 60,000,

making a profit of 20 %. Find the cost prize of the mobile phone. (3 marks)

1 answer

Let the cost price of the mobile phone be x.

The dealer sells the phone at a profit of 25%, so the selling price is 1.25x.
The customer then sells it at a profit of 20%, so the selling price is 1.2 * 60,000 = 72,000.

Therefore, 1.25x = 72,000,

x = 72,000 / 1.25 = 57,600.

So the cost price of the mobile phone is Ksh 57,600.