I stumbled upon a simple question yet got it incorrect.
Jacob bought a scooter for a certain sum of money. He spent 10% of the cost on repairs and sold the scooter for a profit of Rs 1100. How much did he spend on repairs if he made a profit of 20% ?
Assuming initial cost price as CP (price at which Jacob purchased the scooter)
CP+ 0.1CP + Profit = Selling price
1.1*CP + 1100 = 1.2 * CP ?
Repairs= 0.1 * 11000 = 1100
The equation marked with a "?" is where i have a doubt. I need to take 20% profit on the cost price, so do i take it on the original cost price i.e. 1.2*CP or on the cost incurred by Jacob before selling i.e. 1.1*CP*1.2 ?
How is this decided?