Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2005 · Marks: · Difficulty:
An article is sold at a profit of 20\%. If the cost price is increased by 10\% and the sale price by ₹ 26, then the percentage of profit reduces by 5\%. Determine the cost price.
(a)₹ 300
(b)₹ 400
(c)₹ 500
(d)₹ 600
Answer
Answer (as printed): B
Explanation
Let the C.P. be ₹ $x$. Profit $=20 \%$. $$\text { S.P. }=₹\left(\frac{120}{100} \times x\right)=₹ \frac{6 x}{5} \text {. } \text { New C.P. }=₹\left(\frac{110}{100} \times x\right)=₹ \frac{11 x}{10} \text {. }$$ New S.P. $=₹\left(\frac{6 x}{5}+26\right)$. New profit $=₹\left[\left(\frac{6 x}{5}+26\right)-\frac{11 x}{10}\right]=₹\left(\frac{x}{10}+26\right)$. $\therefore\left(\frac{x}{10}+26\right) \times \frac{10}{11 x} \times 100=15 \Rightarrow 100(x+260)=165 x$ $\Rightarrow 65 x=26000 \Rightarrow x=400$.
Explanation as extracted from the printed page; notation may be imperfect.