An article is sold at a profit of 30%. If both cost price and selling price of the article are decreased by ₹100, the profit now would be 45%. The original cost price of the article is:
Answer & explanation
Correct answer: option 3
Let the original cost price of the article be m.
Old selling price at 30% profit will be = 1.3m
both cost price and selling price of the article are decreased by Rs.100
New CP = m -100 and new SP = 1.3m – 100
Profit percentage = 45
45 = \(\frac{(1.3m - 100 ) – (m - 100)}{ m - 100}\) × 100
= 0.45m - 45 = 1.3m - 100 - m + 100
= 0.45m - 0.3m = 45
= 0.15m = 45
m = 300