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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