Profit and Loss Based Question

Question

AMar bought an article and sold it at 37.5% profit.If he had bought it at 40 rupees more and sold it at 40 rupees less , he would have made 125/3 % loss.Find his cost price?

Answer 1

Pramod:

 

My answer, assuming "40 rupees less than the earlier selling price".

 

Let the cost price be C rupees (Hmmmm) His selling price, S, say,  is  (1.375)C.  Nice profit.

Now Amar goes on a bend.  Hypothetical hypnosis?

 

Had he bought the article for 40 rupees more, his cost would have been C+40 R (R with a horizontal slashi n the middle. Let us call it R).  Not only he buys it at higher price but sells at a lower price.  Amar should not do business. He incurs a loss of 125/3% = 125/300 = 0.4167. So the ratio of  his new selling price to his new cost price is 0.5833.  (Got it, Pramod?)

 

His new selling price is (1.375)C - 40
His new cost price is (C+40)

We are told: [(1.375)C – 40] / (C+40) = 0.5833. 

 

Solve for C.  Straightforward.  Get C = 80 R.  Old cost.  Old selling price = 110 (profit 37.5%)

 

New cost price = 120.  New selling price = 70.  Loss/cost ratio = 50/120 = 41.666666667 % = 125/3 %

 

Dr. G.