Question

    A purchased an article and sold it to B at 20% profit. B

    marked it up by 24% above the price at which A has purchased it and then sold it after giving a discount of Rs. 400. If B suffered a loss of 10% in the transaction, then find the cost price of the article for A.
    A Rs. 2500 Correct Answer Incorrect Answer
    B Rs. 2200 Correct Answer Incorrect Answer
    C Rs. 4000 Correct Answer Incorrect Answer
    D Rs. 2300 Correct Answer Incorrect Answer
    E Rs. 2250 Correct Answer Incorrect Answer

    Solution

    Let the cost price of the article for A be Rs. x
    Therefore, cost price of the article for B = Rs. 1.20x
    Marked price of the article = Rs. 1.24x
    Selling price of the article for B = 0.9 × 1.20x = Rs. 1.08x
    According to the question,
    1.24x – 1.08x = 400
    Or, x = 400/0.16 = 2500
    Therefore, cost price of the article for A = Rs. 2500

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