A retailer sold a microwave and a toaster for $480 each. The microwave was sold at a 25% loss, while the toaster was sold at a 60% profit. Calculate the difference between the cost prices of the two appliances.

The correct option is $340.

Step 1: Find the Cost Price of the Microwave
The selling price (SP) of the microwave is $480 and it was sold at a 25% loss.
Using the formula for cost price under a loss:
$\text{SP}=\text{CP}\times (1-\frac{25}{100})$
$480=\text{CP}\times 0.75$
$\text{CP}=\frac{480}{0.75}=640$
So, the cost price of the microwave is $640.

Step 2: Find the Cost Price of the Toaster
The selling price (SP) of the toaster is $480 and it was sold at a 60% profit.
Using the formula for cost price under a profit:
$\text{SP}=\text{CP}\times (1+\frac{60}{100})$
$480=\text{CP}\times 1.6$
$\text{CP}=\frac{480}{1.6}=300$
So, the cost price of the toaster is $300.

Step 3: Calculate the Difference Between the Cost Prices
$\text{Difference}=\text{Cost Price of Microwave}-\text{Cost Price of Toaster}$
$\text{Difference}=640-300=340$
Therefore, the difference between the cost prices of the two appliances is $340.