Question

Hari sold a chair for Rs. 600 at some profit. Had she sold it for Rs. 480, then there would have been a loss equal to one fourth of the initial profit. What is the Cost price of the article?
1. 504
2. 520
3. 500
4. 518

Answer 1

Correct Answer - Option 1 : 504

Given:

If achair is sold for Rs. 600, there will be some profit

If it is sold for Rs. 480, the loss will be one-fourth of the initial profit

Formula used:

C.P = S.P – Profit

C.P = S.P + Loss

Calculation:

Let the profit be Rs. x

If it is sold for Rs. 480, loss = x/4

According to question,

600 – x = 480 + (x/4)

⇒ 600 – 480 = x + (x/4)

⇒ 120 = 5x/4

⇒ x = 24 × 4 = 96

⇒ Cost Price = Rs. (600 – 96) = Rs. 504

∴ The cost price of the article is Rs. 504