Multiple choice

Sanjeev sells an article at 12.5\% profit. If the cost price of the article is decreased by 25\% and the selling price is also decreased by 90 Rs, the new profit percent becomes 20\%. Find the original selling price of the article.

  1. 400 Rs

  2. 440 Rs

  3. 600 Rs

  4. 450 Rs

  5. None of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = x. Original SP = 1.125x (12.5% profit). New CP = 0.75x (25% decrease). New SP = 1.125x - 90. New profit = 20%, so (1.125x - 90) = 1.2(0.75x) = 0.9x. Solving: 1.125x - 90 = 0.9x, so 0.225x = 90, x = 400. Original SP = 1.125 × 400 = 450. Option D is correct.