An item is sold at a 20% profit. If the cost price and selling price are increased by Rs. 50 and Rs. 30 respectively, the profit percent becomes 10%. What is the original cost price?
Show answer & explanation
Correct answer: D
Explanation
Profit = 20%
New CP = CP + 50
New SP = SP + 30
New Profit = 10%
According to the formula:
SP = 1.2 × CP
New SP = 1.1 × New CP
Let CP = x
⇒ SP = 1.2x
⇒ 1.2x + 30 = 1.1(x + 50)
⇒ 1.2x + 30 = 1.1x + 55
⇒ 1.2x − 1.1x = 55 − 30
⇒ 0.1x = 25
⇒ x = ₹250