Multiple choice

A merchant sells a product at a price that gives him a 30% profit on his cost price. However, if the cost price had been 20% lower, and the product had been sold for 18 rupees less, the merchant's profit would have been 40% on the new cost price. What is the original selling price of the product?

  1. Rs. 112

  2. Rs. 118

  3. Rs. 124

  4. Rs. 130
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = x, SP = 1.3x. New CP = 0.8x, New SP = 1.3x - 18. Profit = 40% of 0.8x = 0.32x. So 1.3x - 18 = 0.8x + 0.32x = 1.12x. 0.18x = 18, x = 100. Original SP = 1.3 * 100 = 130.

AI explanation

Let the original cost price be CP, making the initial selling price 1.30 CP. The new cost price becomes 0.80 CP, and the new selling price is 1.30 CP - 18. The new profit is 40 percent of the new cost, so 1.30 CP - 18 = 1.40 * (0.80 CP), which simplifies to 1.30 CP - 18 = 1.12 CP. Solving this gives 0.18 CP = 18 and CP = 100, meaning the original selling price of 1.30 CP is Rs 130.

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