Question

A trader sells an article at a profit of 10%. If he had bought it for 25% less and sold for ₹20 more over the actual selling price, he would have gained 60%. What is the original cost price (in ₹) of the article?

• A. 175
• B. 180
• C. 200
• D. 240

Hint:

In profit and loss questions, create equations based on the profit percentage and use algebra to find the unknown values.

Answer 1

The Correct Option is C

Let the original cost price be \( x \).
- Selling price with a 10% profit = \( 1.1x \).
- If the cost price was reduced by 25%, the new cost price would be \( 0.75x \).
- If the selling price was increased by ₹20, the new selling price would be \( 1.1x + 20 \).
The new profit would be 60%, so the equation is: \[ 1.1x + 20 = 1.6 \times 0.75x \] Solving this equation gives \( x = 200 \).
Thus, the correct answer is 200.