Question

The selling price of a product is fixed to ensure 40% profit. If the product had cost 40% less and had been sold for 5 rupees less, then the resulting profit would have been 50%. The original selling price, in rupees, of the product is

• A. 10
• B. 20
• C. 14
• D. 15

Answer 1

Answer: (C)

14

Answer 2

Let the original cost price be $C$, and the original selling price be $S$. We know that $S = C \times 1.40$. If the cost price is reduced by $40\%$, the new cost price is $0.6C$, and the new selling price is $S - 5$. The new profit is 50

$S - 5 = 1.5 \times 0.6C \implies S - 5 = 0.9C$

Substitute $S = 1.4C$ into this equation:

$1.4C - 5 = 0.9C$
$\implies 0.5C = 5$
$\implies C = 10$

The original selling price is $S = 1.4 \times 10 = 14$.