Question

An article is sold at a profit of $20\%$. If both the cost price and selling price were to be Rs. $20$ less the profit would be $10\%$ more. Find the cost price of the article

• A. Rs. $120$
• B. Rs. $80$
• C. Rs. $60$
• D. Rs. $75$

Answer 1

The correct option is C Rs. $60$

Let the cost price be $x$

Since profit is given as $20\%$, selling price will be $(1+0.2)x$

Thus, selling price would be $1.2x$.

When C.P. and S.P. are Rs. $20$ less then,

C.P. $=x-20$

S.P. $=1.2x-20$

According to the given condition,

Now, $1.2x-20=1.3\times (x-20)$

$\Rightarrow 1.2x-20=1.3x-26$

$\Rightarrow 1.3x-1.2x=-20+26$

$\Rightarrow 0.1x=6$

$\Rightarrow x=60$

therefore, the cost price of the article is Rs. $60$.