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    Question

    An item is sold for a profit of 20%. If the cost to

    purchase the item had been reduced by 20%, and it was subsequently sold at a 25% loss, the seller would have made Rs. 300 less than originally. What was the initial cost price of the item?
    A Rs. 800 Correct Answer Incorrect Answer
    B Rs. 350 Correct Answer Incorrect Answer
    C Rs. 400 Correct Answer Incorrect Answer
    D Rs. 750 Correct Answer Incorrect Answer
    E Rs. 500 Correct Answer Incorrect Answer

    Solution

    Let the original cost price of the article be Rs. ‘x’ Therefore, original selling price of article = Rs. 1.2x New cost price of the article = Rs. 0.8x New selling price of the article = 0.75 × 0.8x = Rs. 0.6x Therefore, 1.2x – 0.6x = 300 Or, x = 300/0.6 = 500

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