Ankit sells an article at a loss of 10 percent. If he buys it for 30 percent less price and sells it for Rs. 26 less price, then his profit will be 10 percent. What is the cost price of the article?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs. 200.
Let the cost price be CP and the selling price be SP
Selling at a 10% Loss
⇒ S.P. = C.P. - 0.10 × C.P.
⇒ S.P. = 0.90 × C.P......(1)
Buying at 30% Less Price
⇒ New CP = CP - 0.30 × C.P.
⇒ New CP = 0.70 × CP.....(2)
Selling at Rs. 26 Less Price
⇒ New SP = SP - 26.....(3)
Profit of 10% on the New Cost Price
⇒ New SP = New CP + 0.10 × New CP
⇒ New SP = 1.10 × New CP
We know that New CP = 0.70 × CP from eq()
⇒ New SP = 1.10 × 0.70 × CP
⇒ New SP = 0.77 × CP
Putting value from eq(3)
⇒ New SP = 0.90 × CP - 26
Therefore,
⇒ 0.77 × CP = 0.90 × CP - 26
⇒ 0.90 × CP - 0.77 × CP = 26
⇒ 0.13 × CP = 26
⇒ CP = 26/0.13
⇒ CP = 200
So, the cost price of the article is Rs. 200