A vendor sells an item at 10% loss. If he increases the selling price by Rs. 45, he would have made a 5% gain. Find the cost price.
Show answer & explanation
Correct answer: A
Explanation
Given:
First sale = 10% loss
Second sale = 5% profit
Difference between the two selling prices = Rs. 45
Let the cost price = x
First selling price = 0.9x
Second selling price = 1.05x
Difference
1.05x − 0.9x = 45
0.15x = 45
x = 300
Cost price = Rs. 300