Question

A man bought an article and sold it at a gain of 10%. If he had bought the article at 20% less and sold it for Rs. 1,000 more, he would have made a profit of 40%. The earlier selling price of the article (in Rs.) is:
1. 50,000
2. 40,000
3. 55,000
4. 60,000

Answer 1

Correct Answer - Option 3 : 55,000

Given:

A man sold an article at a gain of 10% and if he had bought the article at 20% less and sold it for Rs. 1000 more, he would have made a profit of 40%.

Formula used:

S.P = C.P × (1 + P%/100)

P = S.P – C.P

P% = (P/C.P) × 100

Where,

S.P = Selling price 

C.P = Cost price 

P = Profit

Calculation:

Let CP be x

Then, SP = 110x/100 = 11x/10

New CP = 80% of x = 80x/100 = 4x/5

Gain = 40%

New SP = 140% of 4x/5 = (140/100) × 4x/5 = 28x/25

According to the question,

(28x/25) – (11x/10) = 1000

⇒ (56x – 55x)/50 = 1000

⇒ x/50 = 1000

⇒ x = Rs. 50,000

Hence, CP = Rs. 50,000

And SP = (11/10) × 50000 = Rs. 55000

∴ The earlier selling price of the article is Rs. 55000