Correct Answer - Option 2 : 200
Given:
Cost price, CP = Rs x
Selling price, SP = Rs y
Profit % = 25%
Concept used:
SP = CP × (100 + P)%
Calculation:
SP = CP × (100 + P%)
y = x × (125/100)
y= 5x/4 ----(1)
The new cost price = 80% of x
The new selling price = y - 58
Then, (y - 58) = 80% × x × (100 + 20)% ----(2)
Putting (1) in (2),
5x/4 - 58 = 4x/5 × 6/5
Solving the equation we get,
29x/100 = 58
Or, x = Rs 200
∴ The cost price of the article is Rs 200.