Question

Gopesh sells an article on 20% profit. If he bought it at 20% less and sold it at Rs.16 less than he got 40% profit. Find the original cost price.
1. Rs. 400
2. Rs. 350
3. Rs. 650
4. Rs. 200

Answer 1

Correct Answer - Option 4 : Rs. 200

Given:

Profit% = 20%

Reduction in cost price = 20%

Increment in selling price = Rs.16

New profit% = 40%

Formula Used:

Profit = Selling price - Cost price

Calculation:

Case :1

Let assume that the cost price be Rs. 100

Profit% = 20%

⇒ Profit = Rs. 20

⇒ Selling price = Rs. 120

Cost price ∶ Selling price

⇒ 100 ∶ 120

Case: 2

Cost price after reduction = 100 - 20% = 80

Profit% = 40%

⇒ Profit = 80 × 40% = Rs. 32

⇒ So, selling price = 80 + 32 = Rs.112

Differnce in selling price (120 - 112) = Rs. 8

According to question 

Change in selling price = Rs. 16

8 units = Rs.16

⇒ 1 unit = Rs. 2

⇒ 100 units = 2 × 100 = Rs. 200

∴ The original cost price is Rs. 200

The correct option is 4 i.e. Rs. 200