A dealer bought two antique items. On the first item, he gained 25%, and on the second, he lost 10%. The cost price of the first item was 60% more than the second. If the overall profit from both items was ₹225, find the cost price of each item.
Show answer & explanation
Correct answer: B
Explanation
Given:
Profit on the first item = 25%
Loss on the second item = 10%
The cost price of the first item is 60% more than the second.
Total profit = ₹225
Let the cost price of the second item = x
The cost price of the first item = 1.6x
Profit on the first item = 25% × 1.6x = 0.4x
Loss on the second item = 10% × x = 0.1x
Total profit = 0.4x − 0.1x = 0.3x
As per the question:
0.3x = 225
x = 750
The cost price of the second item = ₹750
The cost price of the first item = 1.6 × 750 = 1200
The cost price of the first item = ₹1200
The cost price of the second item = ₹750