Question

A man buys an article and sells it at a profit of 20%. If he would buy it at 20% less and sell it for Rs.75 less he would have gained 25%. What is the cost price of the article ?

Answer 1

Let the C.P. of the article be Rs. x
He makes a profit of 20% Hence S.P.=Rs.$\frac{120x}{100}=Rs.\frac{6x}{5}$ If he would buy it at 20% less then
The new C.P. = Rs.x $(1-\frac{20}{100})=Rs.\times (1-\frac{1}{5})=Rs.\frac{4x}{5}$
If he would sell it for Rs.75 less then the new S.P. = Rs. $(\frac{6x}{5}-75)$
If he gains 25% then the new S.P. = Rs.$\frac{125}{100}\times \frac{4x}{5}=Rs.x$
Hence $\frac{6x}{5}-75=x\Rightarrow \frac{6x}{5}-x=75\Rightarrow \frac{x}{5}=75$
Hence the required C.P. = Rs. 375