Vinay sells an articel at a profit of 20 percent. If both the cost price and selling price are reduced by Rs. 20, then the profit becomes 40 percent. What is the initial cost price ?
Answer & explanation
Correct answer: option 4
By cross multiplication method =
CP SP
20%P 5 6
40%P 5 7
-20 -20
——————————————
35 - 30 = -100 + 140
5x = 40
x = 8
Initial cost price = 5x = 5× 8 = 40