A shopkeeper sold an article at a gain of 20%. Had he bought it for 20% less then the original cost and sold it for ₹10 less, he would have gained 25%. Then the cost price of the article is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹50
Let the cost price of the article be 100x
Thus, the Selling price will be 120x
Had he bought it for 20% less, the cost price would have been 80x
And, if the selling price would have been Rs. 10, the profit would have been 25%.
So, 120x - 10 = (125/100) × 80x
⇒ 120x - 10 = 100x
⇒ 20x = 10 ⇒ x = 1/2
Thus, cost price will be 100 × (1/2) = Rs. 50