A man sold an article at a profit of 25%. Had he sold it for Rs. 60 more, he would have gained 40%. Find the cost price.
Show answer & explanation
Correct answer: B
Explanation
Given:
First profit = 25%
Second profit = 40%
Difference between the two selling prices = Rs. 60
By the formula:
SP = CP × (1 + profit/100)
Let cost price = x
First selling price = 1.25x
Second selling price = 1.40x
1.40x − 1.25x = 60
0.15x = 60
x = 60 ÷ 0.15 = 400
Cost price = Rs. 400