The cost price of articles X and Y is the same. Article X is sold at a 20% profit, and article Y is sold for ₹126 less than the selling price of X. If the net profit by selling both articles is 14%, then what is the cost price (in ₹) of each article?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1,050.
Let the CP of X and Y be the same = P
SP of X = 1.2P
SP of Y = 1.2P - 126
Total CP = P + P = 2P
1.2P + (1.2P - 126) = 1.14 × 2P
⇒ 2.4P - 126 = 2.28P
⇒ 0.12P = 126
⇒ P = 126/0.12 = 1050