Question
Quantity I: The cost price of a watch with a marked
price of Rs. 500, which, after being sold at a 50% discount, still results in a profit of 25%. Quantity II: The cost price of a watch that is sold at a 15% profit. If both the cost price and selling price were reduced by Rs. 100, the profit percentage would increase by 10%. In the question, two Quantity I and Quantity II are given. You have to solve both the Quantities to establish the correct relation between Quantity I and Quantity II.Solution
ATQ, Cost Price of watch = 500 × 0.5/1.25 = 200 Rs. - Quantity I Cost Price of watch = 'y' Rs. , Selling Price = 1.15y Rs. (y – 100) × 1.25 = 1.15y – 100 1.25y – 125 = 1.15y – 100 0.1y = 25 y = 250 - Quantity II Hence, Quantity I < Quantity II
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