An article is sold with a profit of 15% if both the cost price and the selling price of the article were reduced by ₹140 each, then the profit percentage becomes 19.2%. The cost price of the article is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹640.
Original S.P. = x + 15 % of x = x + 0.15x = 1.15x
New C.P. = x−140
New S.P. = 1.15x−140
New profit = 1.15x - 140 - (x - 140) = 0.15x
This new profit is also equal to 19.2% of the new cost price
= 0.15x = 19.2% of (x - 140) = 0.192(x - 140)
⇒ 0.15x = 0.192(x - 140)
⇒0.15x = 0.192x - 26.88
⇒ 0.15x - 0.192x = -26.88 → -0.042x = -26.88
⇒ x = = 640