Multiple choice

Ramesh purchased a bag and sold it at a profit of 20%. Had he purchased it for 40% more and sold it for Rs. 217 more, Ramesh would have had a profit of 30%. What was the cost price of the bag?

  1. Rs. 361.66

  2. Rs. 430.52

  3. Rs. 525.36

  4. Rs. 350

  5. Rs. 650
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = x. Initial SP = 1.2x. New CP = 1.4x. New SP = 1.2x + 217. New profit = 30%, so 1.2x + 217 = 1.3 * 1.4x = 1.82x. 0.62x = 217, x = 217 / 0.62 = 350.

AI explanation

Let the original cost price be x. The original selling price for a 20% profit is 1.20x. The new cost price after a 40% increase is 1.40x, and the new selling price is 1.20x + 217. Using the profit formula, the new profit of 30% means the new selling price is also 1.30 times the new cost price, so 1.30 * 1.40x, which equals 1.82x. Setting the two expressions for the new selling price equal gives 1.82x = 1.20x + 217, so 0.62x = 217. Solving for x gives x = 350. The cost price of the bag was Rs. 350.

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