Multiple choice

An article is sold at 25% profit. If the CP and the SP of the article are increased by Rs 60 and Rs 30 respectively, the profit% decreases by 15%. Find the cost price of the article?

  1. Rs. 190

  2. Rs. 240

  3. Rs. 285

  4. Rs. 305

  5. Rs. 350
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = x, SP = 1.25x. New CP = x + 60, New SP = 1.25x + 30. New profit % = 25 - 15 = 10%. So (1.25x + 30) / (x + 60) = 1.1. 1.25x + 30 = 1.1x + 66. 0.15x = 36. x = 36 / 0.15 = 240.

AI explanation

Let the original cost price (CP) be Rs. C and the selling price (SP) be Rs. S. From the initial 25% profit, we establish the equation S = 1.25C. When the values are increased, the new profit becomes 10%, giving the equation S + 30 = 1.10(C + 60). Expanding the second equation yields S + 30 = 1.10C + 66. Substituting S = 1.25C into this expanded equation gives 1.25C + 30 = 1.10C + 66. Solving for C, we get 0.15C = 36, so C = 240. The cost price is Rs. 240.

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