The owner of the cell phone shop charges 23% more than the cost price. If a customer paid 7011 for a cell phone, find the cost price of the cell phone.
Answer & explanation
Correct answer: option 2
Let the cost price (CP) of the cell phone be $x$.
The shopkeeper charges 23% more than the cost price.
So, the selling price (SP) is:
$SP = 123\% \text{ of } CP = \frac{123}{100}x$
Given:
$\frac{123}{100}x = 7011$
$x = \frac{7011 \times 100}{123}$
Since,
$7011 \div 123 = 57$
$x = 57 \times 100 = 5700$