If sale price of a product is ₹ 25,000, selling and distribution expenses is ₹ 4,000 and profit is 25%…

A profit of $25\%$ ($\frac{1}{4}$) on total cost equals $\frac{1}{5}$ ($20\%$) on sales, so profit on the ₹ 25,000 sale price is $\frac{1}{5} \times ₹ 25{,}000 = ₹ 5{,}000$ and total cost of sales is $₹ 25{,}000 - ₹ 5{,}000 = ₹ 20{,}000$. Subtracting selling and distribution expenses of ₹ 4,000 gives the cost of production: $₹ 20{,}000 - ₹ 4{,}000 =$ "₹ 16,000".