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 INR 1,000 more, he would have made a profit of 40%. The cost price of the article (in INR) is:
Option 1: 50,000
Option 2: 60,000
Option 3: 40,000
Option 4: 25,000
Correct Answer: 50,000
Solution :
Here cost price is denoted by CP, selling price is denoted by SP.
Let the original CP of the article be
Case 1:
SP =
⇒ SP =
⇒ SP =
Case2:
The new CP is 20% less than the original CP and sold for INR 1000 more
New CP =
⇒ New CP =
⇒ New CP =
⇒ New CP =
According to the question,
(SP + 1000) – New CP = 40% of New CP
⇒
⇒
⇒
⇒
⇒
⇒
So,
the cost price of the article is INR 50,000.
Hence, the correct answer is 50,000.
