Concept of “Profit and Loss–16”

Question: A person sells an article at a profit of 10%. If he had bought it at 10% less and sold it for Rs.3 more, he would have gained 25%. Find the cost price. [Ans. (a) Rs.120]

(a) Rs.120 (b) Rs.180 (c) Rs.150 (d) Rs.100 (e) None of these

Solution:

Detailed Explanation:

Concept: “If changes in CP or profit or losses take place in a scale, like percentage; then it can be compared with another scale, like real values”

Let CP be 100 units, then SP will be 110, as given profit is 10%. Again, if the article is bought at 10% less, then the CP is 90% of 100 = 90. It is to be sold at a profit of 25%, then profit = 25% of 90 = 22.5

Therefore, SP = 90 + 22.5 = 112.5

Change in SP = 112.5 – 110 = 2.5

So, 2.5% is the change in the selling prices, but given that the article was sold at Rs.3 more in real.

Therefore, 2.5% ≡ Rs.3

          (CP) 100% ≡? = Rs.120 Ans.