Multiple choice

An article is sold at a profit of 14%. If both the cost price and selling price are decreased by Rs 132, the profit percentage would be 12% more than previous percentage. Find the cost initial price.

  1. Rs 286

  2. Rs 268

  3. Rs 266

  4. Rs 276
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A Correct answer
Explanation

Let CP = x. Initial profit is 0.14x, so SP = 1.14x. New CP = x - 132 and new SP = 1.14x - 132. The new profit percentage is 14% + 12% = 26%. Thus, (1.14x - 132) / (x - 132) = 1.26. Solving for x yields x = 286.

AI explanation

Using the formula Profit = Selling Price - Cost Price, the initial profit is 0.14 times the cost price. After decreasing both by 132, the new profit percentage becomes 26%, so 0.26 equals the new selling price minus the new cost price. This gives the equation 0.26 = ((1.14 times Cost Price) minus 132) minus (Cost Price minus 132), which simplifies to 0.14 times Cost Price equals 40. Solving this yields the initial cost price as Rs 286.

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