Question

A business man sells shirts at a profit of $12\frac{1}{2}\%$ and invests the proceeds to buy pants which he sells at a profit of $20\%$. If he makes a net profit of Rs. $700$, the cost of the shirts is __________.

• A. Rs. $2300$
• B. Rs. $2500$
• C. Rs. $2000$
• D. Rs. $2400$

Answer 1

Answer: (C)

Rs. $2000$

Let the

cost price of shirts $=CP$

Profit $=12\frac{1}{2}\%=12.5\%$

Selling price $=S{P}_1=112.5\%$ Of $CP$

$S{P}_1=\frac{112.5}{100}\times CP=1.125CP.............\left(1\right)$

Now this amount is invested in buying pants

Profit $=20\%$ on selling these pants

Cost price $=S{P}_1$

Selling price $=S{P}_2=120\%$ Of $S{P}_1$

$S{P}_2=\frac{120}{100}\times S{P}_1=1.2\times 1.125CP=1.35CP$

Net profit $=Rs.700$ given

Net profit $=S{P}_2-CP=Rs.700$

$\Rightarrow 1.35CP-CP=Rs.700$

$\Rightarrow 0.35CP=Rs.700$

$\Rightarrow CP=Rs.2000$

Cost price of Shirts is $Rs.2000$