Multiple choice

The marked price of an article is 50% above cost price. When marked price is increased by 20% and selling price is increased by 20%, the profit doubles. If original marked price is Rs. 300, then original selling price is -

  1. Rs. 200

  2. Rs. 250

  3. Rs. 240

  4. Rs. 275
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = x. Original MP = 1.5x = 300, so x = 200. Original SP = P (profit). New MP = 300 × 1.2 = 360. New SP = 1.2P. New profit = 1.2P - 200 = 2(P - 200). Solving: 1.2P - 200 = 2P - 400, so 0.8P = 200, P = 250. Original SP = Rs. 250 (option B).

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