Correct Answer - Option 2 : 550
Given:
Profit earned after selling the article for Rs. 625 is 50% more than the loss incurred after selling the article for Rs. 500.
Concept Used:
Profit = Selling price – Cost price
⇒ Cost price = Selling price - profit
Calculation:
Profit is 50% more than the loss
Let loss be 100%
Then profit = (100 + 50) = 150%
The ratio of profit on selling Rs. 625 and loss incurred on selling Rs. 500 = 150 : 100
⇒ 3 : 2
Difference between two selling price is (625 – 500)
⇒ 125
Profit = (3/5) × 125
⇒ 75
Cost price = 625 – 75
⇒ Cost Price = 550
∴ The cost price of the article is Rs. 550