The cost prices of articles A and B are the same. A is sold at 20% profit, whereas B is sold for ₹54.60 more than the selling price of A. If the overall profit earned on selling A and B is 28%, then what is the cost price of each article?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. ₹ 341.25.
Let the CP of A and B each = x
SP of A = 1.2x and SP of B = 1.2x + 54.60
Total CP = x + x = 2x
Overall profit = 0.28 × 2x = 0.56x
2x + 0.56x = 1.2x + (1.2x + 54.60) = 2.4x + 54.60
⇒ 2.4x + 54.60 = 2.56x
⇒ 0.16x = 54.60
⇒ x = 54.60/0.16 = 341.25