A person sold an article at 17.5% profit. If he would have bought it ₹ 765 less and sold it ₹ 765 less, then profit would be 22.22%, then find the original cost price of the article.
Answer & explanation
Correct answer: option 1
Let's assume that the initial cost price of the article is Rs. x.
According to the given data, the article is sold at 17.5% profit.
Selling price of article = x + \(\frac{17.5x}{100}\) = Rs. 1.175x
When the cost price is reduced by Rs. 765, the new cost price = Rs. x - 765
Similarly, when the selling price is reduced by Rs. 765, the new selling price = Rs. (1.175x - 765)
The profit after the decrease is 22.22%.
=> x - 765 + ( \(\frac{22.22}{100}\) ) × (x - 765) = 1.175x - 765
=> 1.175x -x = \(\frac{22.22x - 22.22 × 765}{100}\)
=> 0.175x × 100 = 22.22x - 16,998.3
=> 22.22x - 17.5x = 16,998.3
=> 4.72x = 16,998.3
=> x = Rs. 3601