Question

The selling price of a product is fixed to ensure 40% profit. If the product had cost 40% less and had been sold for 5 rupees less, then the resulting profit would have been 50%. The original selling price, in rupees, of the product is

• A. 10
• B. 20
• C. 14
• D. 15

Answer 1

The Correct Option is C

Let the original cost price be $C$, and the original selling price be $S$. We know that $S = C \times 1.40$. If the cost price is reduced by \(40\%\), the new cost price is $0.6C$, and the new selling price is $S - 5$. The new profit is 50

$S - 5 = 1.5 \times 0.6C \implies S - 5 = 0.9C$

Substitute $S = 1.4C$ into this equation:

\(1.4C - 5 = 0.9C\)
\(\implies 0.5C = 5\)
 \(\implies C = 10\)

The original selling price is $S = 1.4 \times 10 = 14$.