Question
The difference between an article's tag price and its
actual selling price equals 40% of the difference between the tag price and cost price. If the profit earned is 25% and the marked price is Rs. 800, find the cost price.Solution
ATQ,
Let the cost price be Rs. 100x
Then selling price = Rs. 100x × 1.25 = Rs. 125x
ATQ,
(800 - 125x) = (800 - 100x) × 0.40
Or, 800 - 125x = 320 - 40x
Or, 480 = 85x
So, x = 5.65
So, cost price = Rs. 100 × 5.65 = Rs. 565
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