Question

A shopkeeper sells his goods at 25% profit. If he had bought it at 5% less and sold it for Rs. 55 less, he would have gained 20%. Find the original selling price of the article?
1. Rs. 550
2. Rs. 600
3. Rs. 625
4. Rs. 575

Answer 1

Correct Answer - Option 3 : Rs. 625

Given:

Original Profit% = 25%

Change in CP = 5% less than Original CP

Original SP - New SP = Rs. 55

New Profit % = 20%

Concept:

Consider the CP be 100y, then proceed.

Calculation:

Let, the Original CP = 100y

Original SP = 125y

New CP = 95y

∵ Profit Made on New CP = 20% × 95y

= 19y

∴ New SP = CP + Profit

= 95y + 19y

= 114y

∵ Original SP - New SP = Rs. 55

⇒ 125y - 114y = 55

⇒ 11y = 55

⇒ y = 55/11

⇒ y = 5

∴ Original SP = 125y

= 125 × 5

= Rs. 625