Question:medium

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

Updated On: Mar 24, 2026
  • 10
  • 20
  • 14
  • 15
Show Solution

The Correct Option is C

Solution and Explanation

Let the cost price (CP) of the product be \( x \) rupees. To achieve a 40% profit, the selling price (SP) is set as:

\[ SP = x + 0.4x = 1.4x \]

If the cost price were reduced by 40%, the new cost price would be:

\[ 0.6x \]

And the selling price would be 5 rupees lower:

\[ 1.4x - 5 \]

Under these conditions, the profit would be 50%. This can be expressed as:

\[ 1.5 \times 0.6x = 1.4x - 5 \]

Simplifying the equation:

\[ 0.9x = 1.4x - 5 \]

Rearranging to solve for \( x \):

\[ 1.4x - 0.9x = 5 \]

\[ 0.5x = 5 \]

\[ x = \frac{5}{0.5} = 10 \]

The original selling price is calculated as:

\[ SP = 1.4 \times 10 = 14 \]

Therefore, the original selling price of the product is 14 rupees.

Was this answer helpful?
2


Questions Asked in CAT exam