Question
A shopkeeper sells a smartphone at a profit of 25%. If
he had given a discount of 10% on the actual selling price, his profit would have decreased by Rs 150. What is the cost price of the smartphone?Solution
Let cost price = C. Original selling price SP₁ = 1.25C Profit in first case = 1.25C − C = 0.25C If he gives 10% discount on SP₁: New SP₂ = 0.9 × 1.25C = 1.125C Profit in second case = 1.125C − C = 0.125C Decrease in profit = 0.25C − 0.125C = 0.125C Given this decrease is Rs 150: 0.125C = 150 C = 150 / 0.125 = 150 × 8 = 1,200 So, cost price = Rs 1,200.
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