The selling price of an article is four times of its cost price. If the selling price is reduced by ₹300, then the profit becomes 250%. What is the cost price of the article?
Answer & explanation
Correct answer: option 4
Selling price of an article = four times of its cost price
SP : CP = 4 : 1
Let the cost price = 1x
then the selling price = 4x
If the selling price reduced by 300 then the profit will become 350%
According to the question,
\(\frac{4x - 300}{x}\) = \(\frac{7}{2}\)
8x - 600 = 7x
x = CP = 600