A man bought an article and sold it at a gain of 10% . If he had bought the article at 20% less and sold it for Rs1,000 more , he would have made a profit of 40%. The cost price of the article ( in Rs) is :
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 50,000
Let's assume the cost price of the article = Rs. 100 x
So, the selling price of the article = 100x × (100 + 10)/100 = 110 x
Now, according to the question if he bought the article at 20% less
⇒ New CP = 100x × (100 - 20)/100 = 80 x
⇒ And New SP = 110 x + 1000
Profit = 40 %
SP = CP × (100 + Profit%)/100
⇒ 110 x + 1000 = 80 x × (140/100)
⇒ 1000 = 112 x - 110 x
⇒ x = 500
So, the cost price of the article = 100 × 500 = Rs. 50,000