A shopkeeper sold an article at a gain of 20%. Had he bought it for 20% less than the original cost and sold it for Rs 10 less, he would have gained 25%. Then the Cost Price of the article is:

Options:
a) Rs 45
b) Rs 60
c) Rs 50
d) Rs 40

Solution

Assume Cost Price (CP) of article = 100a

Sold at a gain of 20%
SP= 100a x120% =120a
20% less than the original cost
100a x 80% = 80a
New Selling price (gained 25%) = 80a x 125% = 100a

As per question:
120a – 100a = 10
=> 20a =10
=> a=1/2
Actual Cost price = 100 x a = 100/2 = 50

Ans : Rs 50