Multiple choice

Aman buys an article and sells it at a profit of 37.5%. Had he bought the article at Rs.90 less, he would have been able to make a profit of 60% by selling at the same selling price. Find the cost at which the Aman bought the article.

  1. 1500

  2. 300

  3. 640

  4. 1200

  5. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP be x. SP = 1.375x. New CP = x - 90. New SP = 1.6(x - 90). Since SP is same, 1.375x = 1.6x - 144. 0.225x = 144. x = 144 / 0.225 = 640.

AI explanation

Let the initial cost price be CP. Aman sells the article at a profit of 37.5%, so the Selling Price (SP) is 1.375 CP. If the cost price is reduced by Rs. 90, the new cost price becomes (CP - 90). Selling at the same SP yields a 60% profit, meaning SP = 1.6(CP - 90). Equating the two expressions for SP gives 1.375 CP = 1.6 CP - 144. Solving this equation, 0.225 CP = 144, which results in CP = 640. The cost at which Aman bought the article is 640.

Keep practicing — related questions