A rocking chair was sold at a profit of 10%. Had it been sold at ₹ 80 More, the profit would have been 15%. What is the cost price (in ₹) of the chair?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1,600.
Given:
A rocking chair was sold at a profit of 10%.
Had it been sold at ₹ 80 More, the profit would have been 15%
Formula used:
Selling price = Cost price(100 + profit%) ---- (1)
Calculations:
Let the cost price of the rocking chair be 100x
After 10% profit, Selling price = 100x(100 + 10%) = 110x
If profit is 15%, selling price = 100x(100 + 15%) = 115x
According to the question,
⇒ 115x - 110x = 80
⇒ 5x = 80
⇒ x = 16
Cost price = 100x = 100 × 16 = 1600