An article is sold at 20% profit. If its cost price and selling price are both decreased by Rs. 100, the profit percentage becomes 25%. Find the original cost price. MCQ with Answer and Explanation

An article is sold at 20% profit. If its cost price and selling price are both decreased by Rs. 100, the profit percentage becomes 25%. Find the original cost price.
A. Rs. 500
B. Rs. 400
C. Rs. 600
D. Rs. 450
Answer: Option A
Solution (By JKSSB Mock Tests)
Let original CP = x. Original SP = 1.2x. New CP = x - 100. New SP = 1.2x - 100. New profit = 25%. So, 1.2x - 100 = 1.25(x - 100). 1.2x - 100 = 1.25x - 125. 0.05x = 25. x = 500.

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Practice More Profit And Loss Questions

Question #1
A merchant earns a 25% profit on the selling price of an article. What is his true profit percentage on the cost price?
A. 30%
B. 40%
C. 20%
D. 33.33%

Correct Answer: Option D


Explanation:
Let Selling Price = 100. Profit = 25. Cost Price = 100 - 25 = 75. True profit percentage = (25 / 75) * 100 = 33.33%.

This question belongs to: Maths Profit And Loss
Question #2
A vendor bought bananas at 6 for Rs. 10 and sold them at 4 for Rs. 8. Find his profit percentage.
A. 25%
B. 20%
C. 10%
D. 15%

Correct Answer: Option B


Explanation:
Cost price of 1 banana = 10 / 6 = 5/3. Selling price of 1 banana = 8 / 4 = 2. Profit = 2 - 5/3 = 1/3. Profit percentage = ((1/3) / (5/3)) * 100 = 20%.

This question belongs to: Maths Profit And Loss
Question #3
A man sells an article at a profit of 25%. If the cost price is Rs. 320, what is the selling price?
A. Rs. 400
B. Rs. 360
C. Rs. 380
D. Rs. 420

Correct Answer: Option A


Explanation:
SP = 320*1.25 = 400.

This question belongs to: Maths Profit And Loss