A shopkeeper sells an article at a 10% profit. If the cost price had been ₹ 200 less and the selling price remains the same, his profit would have been 20%. What is the actual cost price of the article?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹ 2,400
The selling price is the same in both cases, so it can be written in two ways, from the actual cost price and from the reduced one, and the two expressions are set equal.
Let the actual cost price be ₹\(x\):
Selling price at a 10% profit on \(x\): \(1.1x\)
Selling price at a 20% profit on a cost of \(x-200\): \(1.2(x-200)\)
The two selling prices are equal: \(1.2(x-200)=1.1x\), that is \(1.2x-240=1.1x\)
So \(0.1x=240\), and the actual cost price is \(x=2400\), that is ₹2,400