Question
A furniture dealer sold an almirah with a 20% profit
margin. Had the dealer purchased the almirah at a cost that was 10% lower and then sold it for an additional Rs. 300, the profit margin would have risen to 40%. Calculate the original cost price of the almirah.Solution
Let the original cost price of almirah be Rs. '100y'. Original selling price of almirah = 1.2 X 100y = Rs. '120y' New cost price = 0.9 X 100y = Rs. '90y' New selling price = Rs. (120y + 300) ATQ, 120y + 300 = 1.4 X 90y Or, 120y + 300 = 126y Or, 6y = 300 So, 'y' = 50 Therefore, original cost price = '100y' = 50 X 100 = Rs. 5,000
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