Question

If the marked price of an article is $50\%$ above the cost price, when marked price is increased by $20\%$ and selling price is increased by $20\%$ then the profit is doubled. If the original marked price is $Rs.300$ then what is the original selling price?

Answer 1

Given,
$MP=Rs.300$
Marked price was $50\%$ above the cost price.

Let $CP$ be $y$

So, $MP=y+50\%ofy$

$\Rightarrow y+\frac{50}{100}\times y=300$

$\Rightarrow y=Rs.200$

Let the $SP$ was $X$.

$\therefore Profit=Rs.(X-200)$

New $MP=Rs.(300+20\%of300)=Rs.(300+\frac{20}{100}\times 300)=Rs.360.$

So,New $SP=X+20\%ofX=X+\frac{20}{100}X=1.2X$

$\therefore Profit=Rs.(1.2X-200)$

Now, according to question,
$\Rightarrow 1.2X-200=2\times (X-200)$
$\Rightarrow 1.2X-200=2X-400$
$\Rightarrow 0.8X=200$
$\Rightarrow X=250$
Thus, original selling price was $Rs.250$