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.**