Multiple choice

The cost price of item B is Rs. 150 more than the cost price of item A. Item A was sold at a profit of 10% and item B was sold at a loss of 20%. If the respective ratio of selling prices of items A and B is 11: 12, what is the cost price of item B?

  1. Rs. 450

  2. Rs. 420

  3. Rs. 400

  4. Rs. 350

  5. Rs. 480
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let cost price of A = x. Then cost price of B = x+150. Selling price of A = 1.1x (10% profit). Selling price of B = 0.8(x+150) (20% loss). The ratio SP_A:SP_B = 11:12, so 1.1x / [0.8(x+150)] = 11/12. Cross-multiplying: 13.2x = 8.8x + 1320. Solving: 4.4x = 1320, x = 300. So CP of A = Rs. 300, and CP of B = 300+150 = Rs. 450. Therefore, the cost price of item B is Rs. 450.

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