Question

A man sells an article and makes a profit of 6%. Had he bought the article at a price 4% less and sold at a price higher by Rs 7.60, he would have made a profit of 12%. Find his cost price.

Answer 1

Let s be the selling price and c be the cost price.

`("s" - "c")/"c"` = 6%
⇒ s - c = 0.06c
⇒ s = 1.06c........(i)
If he bought at 4% less cost price = c - 4% c = 0.96c and sold at Rs.7.60 higher
⇒ selling price = s + 7.60
Therefore.
`("s" + 7.60 - 00.96"c")/(0.96"c")` = 12%

⇒ `("s" + 7.60 - 0.96"c")/(0.96"c")` = 0.12..........(ii)

Substituting (i) in (ii)

⇒ `((10.6"c") + 7.60 - 0.96"c")/(0.96"c")` = 0.12

⇒ `(0.1"c" + 7.60)/(0.96"c")` = 0.12
⇒ 0.1c + 7.60 = 0.12 x 0.96c
⇒ 0.1c + 7.60 = 0.1152c
⇒ 0.0152c = 7.60
⇒ c = 500
Therefore, his cost price is Rs.500.