A salesman sold a watch at a loss of 15%. If the selling price had been increased by Rs. 150, there would have been a gain of 5%, What was the cost price of the watch?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 750
Calculations:
Let the cost price be 100x
Selling price when loss is 15% = 100x × 85% = 85x
Selling price when profit is 5% = 100x × 105% = 105x
Increase in selling price = 105x - 85x
⇒ 20x = 150
⇒ x = 7.5
Cost price = 100x = 100 × 7.5 = Rs 750