A trader sells his goods at 25% profit. Had he bought it at 10% more and sold it for ₹75 more, he would have earned a profit of 25%. The cost price of the goods is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 600.
Let cost price = x
First case = Profit = 25% ⇒ Selling price = 1.25x
Second case: New cost price = 1.1x
New selling price = 1.25 × 1.1x = 1.375x
Also new selling price = old selling price + 75 = 1.25x + 75
So:
⇒ 1.375x = 1.25x + 75 ⇒ 0.125x = 75 ⇒ x = 600