A loss of 12% gets converted into a profit of 8.5% when the selling price of an article is increased by ₹164. The cost price of the article is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹800.
A loss of 12% gets converted into a profit of 8.5% when the selling price of an article is increased by 164.
Selling price = Cost price + Cost price × profit%
Selling price = Cost price - Cost price ×
Let the cost price be 100a.
Selling price of 1st case = 100a - 100a × 12% = 88a
Selling price of 2nd case = 100a + 100a × 8.5% = 108.5a
According to the question -
108.5a - 88a = Rs. 164
20.5a = Rs. 164
a = Rs. (164/20.5)
a = Rs. 8
So, cost price of the article = 100 × 8 = Rs. 800