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Let the cost price of the article be Rs. 100x Therefore, selling price of article = Rs. 145x Therefore, profit earned = 145x – 100x = Rs. 45x New profit = 3.28 × 45x = Rs. 147.6x According to the question, (147.6x/100x) × 100 = 100x Or, x = 1.476 Therefore, actual cost price = 100x = Rs. 147.6
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The decision to cut the prices were taken after a fortnightly review meeting of the oil companies.
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