Multiple choice

A shopkeeper sells an item at a profit of 25%. Had he bought it at 15% less than its actual price and sold it for 48 less, his gain percentage would have been 40%. Find the cost price of the item.

  1. Rs. 800

  2. Rs. 900

  3. Rs. 1000

  4. Rs. 1200
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100x. Initial SP = 125x. New CP = 85x. New SP = 125x - 48. New profit = 40% of 85x = 34x. So, 85x + 34x = 125x - 48. 119x = 125x - 48, 6x = 48, x = 8. CP = 800.

AI explanation

Let the actual cost price be x, making the initial selling price 1.25x based on the 25% profit. The new cost price is 0.85x and the new selling price is 1.25x - 48. Using the 40% gain condition, we write 1.25x - 48 = 1.40(0.85x). Simplifying this gives 1.25x - 48 = 1.19x, so 0.06x = 48. Solving for x yields the cost price of the item as Rs. 800.

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