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.

To find the difference between the cost prices of the two appliances, we need to calculate the cost price (CP) of each appliance individually using their selling prices (SP) and the respective profit or loss percentages.

Step 1: Calculate the Cost Price of the Microwave
The microwave was sold for $480 at a 25% loss.
The formula relating Selling Price (SP), Cost Price (CP), and Loss Percentage is:
$\text{SP}=\text{CP}\times \left(1-\frac{\text{Loss \%}}{100}\right)$
Substituting the given values:
$480={\text{CP}}_{\text{microwave}}\times \left(1-\frac{25}{100}\right)$
$480={\text{CP}}_{\text{microwave}}\times 0.75$
Solving for the cost price of the microwave:
${\text{CP}}_{\text{microwave}}=\frac{480}{0.75}=640$
So, the cost price of the microwave is $640.

Step 2: Calculate the Cost Price of the Toaster
The toaster was sold for $480 at a 60% profit.
The formula relating Selling Price (SP), Cost Price (CP), and Profit Percentage is:
$\text{SP}=\text{CP}\times \left(1+\frac{\text{Profit \%}}{100}\right)$
Substituting the given values:
$480={\text{CP}}_{\text{toaster}}\times \left(1+\frac{60}{100}\right)$
$480={\text{CP}}_{\text{toaster}}\times 1.60$
Solving for the cost price of the toaster:
${\text{CP}}_{\text{toaster}}=\frac{480}{1.60}=300$
So, the cost price of the toaster is $300.

Step 3: Calculate the Difference Between the Cost Prices
Subtract the cost price of the toaster from the cost price of the microwave:
$\text{Difference}={\text{CP}}_{\text{microwave}}-{\text{CP}}_{\text{toaster}}$
$\text{Difference}=640-300=340$
Thus, the difference between the cost prices of the two appliances is $340.