If the cost price of article A is 250 more than the cost price of article B. Article A is sold at a profit of 20% and article B is sold at a loss of 20%. If the overall profit after selling both the items is 4%, what is the cost price of both the articles?
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$A=750, B=500$
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$A=775, B=525$
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$A=475, B=725$
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$A=725, B=475$
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$None of these$
A
Correct answer
Explanation
Let CP of B = x. Then CP of A = x + 250. SP of A at 20% profit = 1.2(x + 250) = 1.2x + 300. SP of B at 20% loss = 0.8x. Total CP = 2x + 250. Total SP = 2x + 300. Overall profit = 4%, so (2x + 300) = 1.04(2x + 250). Solving: 2x + 300 = 2.08x + 260, so 40 = 0.08x, giving x = 500. Therefore CP of A = Rs 750 and CP of B = Rs 500.