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Let the actual cost price be Rs. 100x So, actual selling price = 100x × 120% ⇒ Rs. 120x Now, If he had bought it at 20% less than the actual then its cost price = 100x × 80% ⇒ Rs. 80x Now, new selling price = 80x × 125% ⇒ 100x According to the question, 120x - 100x = 10 ⇒ 20x = 10 ⇒ x = 1/2 So, actual cost price = 100 × (1/2) ⇒ Rs. 50 ∴ The Cost Price of the article is Rs. 50.
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