Question

If a shopkeeper increases the selling price of an article by 10% and gets a profit of 37.5% on its cost price. If he increases the selling price by 25% above on old selling price then he gets a profit of ₹ 225 on his cost price. Find the cost price of the article?

1. ₹ 365
2. ₹ 320
3. ₹ 420
4. ₹ 400
5. ₹ 510

Answer 1

Correct Answer - Option 4 : ₹ 400

Given:

First Case: A shopkeeper increases the S.P of an article 10% above S.P.

Profit = 37.5% of C.P

Second Case: A shopkeeper increases the S.P by 25% above S.P.

Profit = ₹ 225 on C.P

Concept Used:

Profit% = {(S.P - C.P)/C.P} × 100

Calculation:

Let S.P be 100x

then, new S.P (in first case) = 110x

According to the question

137.5% of C.P = 110x

C.P = (110x/137.5) × 100

⇒ 80x

In second case

125x - C.P = ₹ 225

⇒ 125x - 80x = ₹ 225

⇒ 45x = ₹ 225

⇒ x = ₹ 5

Then, C.P = 80x

⇒  80 × 5 = ₹ 400

∴ The Cost Price of the article is ₹ 400.