Multiple choice

A sells an article to B and makes a profit of 1/5 of his outlay. B sells it to C, gaining 20%. If C sells it for Rs. 600 and incurs a loss of 1/6 of his outlay, the cost price of A is

  1. Rs. 720

  2. Rs. 800

  3. Rs. 600

  4. Rs. 500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

C sells for 600 with 1/6 loss. Cost for C = 600 / (5/6) = 720. B gains 20% selling to C. Cost for B = 720 / 1.2 = 600. A gains 1/5 selling to B. Cost for A = 600 / (6/5) = 500.

AI explanation

Let the cost price for A be x; A sells to B at a profit of 1/5 of the outlay, so the selling price is x + x/5 = 1.2x. B sells to C gaining 20 percent, making the price for C equal to 1.20 times 1.2x, which is 1.44x. C incurs a loss of 1/6 of his outlay when selling for Rs. 600, meaning 600 equals 1.44x multiplied by (5/6). Solving 600 = 1.2x yields x = 500, so the cost price of A is Rs. 500.

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