Multiple choice

Raju sells an article at 20% profit. When the cost price of the article was reduced to 62.5% of its original cost price, he also reduces the selling price of the article by 260 Rs. If his new profit percent is 40%, find the original cost price of the article.

  1. 800 Rs

  2. 750 Rs

  3. 500 Rs

  4. 1250 Rs

  5. 1500 Rs
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let original CP = x. Original SP at 20% profit = 1.2x. New CP = 0.625x. New SP = 1.2x - 260. New profit is 40%, so New SP = 1.4 × 0.625x = 0.875x. Therefore: 1.2x - 260 = 0.875x, which gives 0.325x = 260, so x = 800. The original cost price is Rs 800.

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