Question

An article is sold at a profit of 25%. If both cost price and selling price of the article are decreased by Rs. 150 the profit would be 40%. The original cost price of the article is?
1. Rs. 400
2. Rs. 500
3. Rs. 300
4. Rs. 350

Answer 1

Correct Answer - Option 1 : Rs. 400

GIVEN:

Profit = 25%

Change in CP and SP = Rs. 150

New profit = 40%

FORMULA USED:

Profit % = profit/CP × 100

Profit = SP - CP

CALCULATION:

Let the original CP be Rs. 100x

∴ SP = 125x

A.T.Q

New CP = 100x - 150

⇒ New SP = 125x - 150

⇒ New profit = 125x - 150 - 100x + 150 = 25x

Now,

25x/(100x - 150) × 100 = 40

⇒ 250x = 400x - 600

⇒ x = 4

CP = 100x = Rs. 400

∴ The CP is Rs. 400