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Question : The selling price of an article is four times of its cost price. If the selling price is reduced by INR 300, then the profit becomes 250%. What is the cost price of the article?

Option 1: INR 400

Option 2: INR 450

Option 3: INR 800

Option 4: INR 600


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: INR 600


Solution : Let the cost price of the article as C and the selling price as S.
It is given that the selling price is four times the cost price.
⇒ S = 4C
We also know that if the selling price is reduced by INR 300, the profit becomes 250% (Profit = 2.5C).
Since Selling price = Profit + Cost price
S – 300 = 2.5C + C
⇒ S – 300 = 3.5C
We can solve these two equations simultaneously to find the cost price.
⇒ 4C – 300 = 3.5C
⇒ C = $\frac{300}{4 - 3.5}$ = INR 600
Hence, the correct answer is INR 600.

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