Multiple choice

An article is sold at 10 percent loss. If its cost price is decreased by Rs 5 and selling price is increased by Rs 8 , then profit of 10 percent is earned on it. What is the original cost price of the article?

  1. Rs. 68.5

  2. Rs. 67.5

  3. Rs. 62.5

  4. Rs. 60.75

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

Let original CP = x. Selling at 10% loss means SP = 0.9x. New CP = x - 5, new SP = 0.9x + 8. New profit is 10% of new CP, so new SP = 1.1(x - 5). Setting up: 0.9x + 8 = 1.1(x - 5). Solving: 0.9x + 8 = 1.1x - 5.5, which gives 13.5 = 0.2x, so x = 67.5. The Rs. 5 decrease in CP and Rs. 8 increase in SP together improve the profit margin by 20% of original CP.