A person sells pencils at a profit of 30 percent. If he reduces its selling price by Rs. 200, then he suffers a loss of 10 percent. What was the initial selling price of the pencil?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 650.
Let the C.P. be y
Profit occurs
⇒ S.P. = C.P. + P%
⇒ y + 30% of y = 1.3y
Loss occurs
⇒ S.P. = C.P. - L%
⇒ y - 10% of y = 0.9y
Now, according to the question
⇒ 1.3y - 0.9y = 200
⇒ 0.4y = 200
⇒ y = 500
Initial S.P. = 1.3 × 500 = Rs. 650