An article is sold at a 20% profit. If both the cost price and the selling price are reduced by Rs. 100, the profit increases by 4%. Find the initial cost price. MCQ with Answer and Explanation

An article is sold at a 20% profit. If both the cost price and the selling price are reduced by Rs. 100, the profit increases by 4%. Find the initial cost price.
A. Rs. 400
B. Rs. 500
C. Rs. 800
D. Rs. 600
Answer: Option D
Solution (By JKSSB Mock Tests)
Let initial CP = x. Initial SP = 1.2x. New CP = x - 100. New SP = 1.2x - 100. New profit = 24%. New SP = 1.24 * (x - 100). 1.2x - 100 = 1.24x - 124. 0.04x = 24. x = 600.

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Practice More Profit And Loss Questions

Question #1
If the selling price of an article is Rs. 330 and the profit is 10%, find the cost price.
A. Rs. 320
B. Rs. 310
C. Rs. 300
D. Rs. 290

Correct Answer: Option C


Explanation:
CP = 330 / 1.10 = 300.

This question belongs to: Maths Profit And Loss
Question #2
A shopkeeper offers a discount of 10% on an article marked at Rs. 500. What is the selling price?
A. Rs. 470
B. Rs. 440
C. Rs. 460
D. Rs. 450

Correct Answer: Option D


Explanation:
SP = 500*0.9 = 450.

This question belongs to: Maths Profit And Loss
Question #3
A trader marks his goods 40% above cost and gives a discount of 20%. What is his profit percent?
A. 10%
B. 12%
C. 15%
D. 8%

Correct Answer: Option B


Explanation:
Let CP = 100, MP = 140, SP = 140*0.8 = 112, profit = 12%.

This question belongs to: Maths Profit And Loss