A watch is sold at a profit of 25%. If both the cost price and the selling price of the watch are decreased by Rs. 75, then the profit would be 30%. The original selling price (in Rs.) of the watch is:
- A552.60
- B525.60
- C526.50
- D562.50
Solution & Step-by-step Explanation
Let the original Cost Price (CP
1
) be 100x.
Since the profit is 25%, the original Selling Price (SP
1
) is:
SP
1
=125x
According to the question, both CP and SP are decreased by Rs. 75:
New CP (CP
2
)=100x−75
New SP (SP
2
)=125x−75
The new profit is 30%. Therefore:
SP
2
=CP
2
×(1+
100
30
)
125x−75=(100x−75)×1.3
125x−75=130x−97.5
97.5−75=130x−125x
22.5=5x
x=
5
22.5
=4.5
The original selling price is SP
1
=125x:
SP
1
=125×4.5=Rs. 562.50
1
) be 100x.
Since the profit is 25%, the original Selling Price (SP
1
) is:
SP
1
=125x
According to the question, both CP and SP are decreased by Rs. 75:
New CP (CP
2
)=100x−75
New SP (SP
2
)=125x−75
The new profit is 30%. Therefore:
SP
2
=CP
2
×(1+
100
30
)
125x−75=(100x−75)×1.3
125x−75=130x−97.5
97.5−75=130x−125x
22.5=5x
x=
5
22.5
=4.5
The original selling price is SP
1
=125x:
SP
1
=125×4.5=Rs. 562.50