Two mobile phones were purchased at the same price. One was sold at a profit of 20% and the second was sold at a price which was Rs.1520 less than the price at which the first was sold. If the overall profit earned by selling both the mobile phones was 1%, then determine the cost price of one mobile?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 4000
Both phones cost the same, so the profit of 1% on both phones together is worked out on the total cost of the two. The total selling price is written in two ways and the two are set equal.
Assuming the cost price of one phone to be \(x\).
The two sales (each phone costs \(x\)):
First phone sold at 20% profit: SP \(=1.2x\)
Second phone sold for Rs 1520 less: SP \(=1.2x-1520\)
Total SP \(=2.4x-1520\)
The 1% profit on both (worked out on the total cost \(2x\)):
Total SP \(=1.01\times2x=2.02x\)
Finding \(x\) (the two totals are equal):
\(2.4x-1520=2.02x\)
\(0.38x=1520\)
\(x=4000\)