A purchased an article and sold it to B at 25% profit. B marked it up by 20% above the price at which A has purchased it and then sold it after giving a discount of Rs. 300. If B suffered a loss of 10% in the transaction, then find the cost price of the article for A.

Let the cost price of the article for A be Rs. x

Therefore, cost price of the article for B = Rs. 1.25x

Marked price of the article = Rs. 1.20x

Selling price of the article for B = 0.9 × 1.25x = Rs. 1.125x

According to the question,

1.20x – 1.125x = 300

Or, x = 300/0.075 = 4000

Therefore, cost price of the article for A = Rs. 4000

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