Reena makes a profit of 20% by selling pens at a certain price. If she charges ₹5 more on each pen, she will gain 40%. The initial selling price of one pen was:
- A₹30
- B₹20
- C₹35
- D₹25
Solution & Step-by-step Explanation
Let the Cost Price (CP) of one pen be x.
Initially, profit is 20%.
Initial Selling Price (SP
1
)=1.20x
If she charges ₹5 more, the new profit becomes 40%.
New Selling Price (SP
2
)=1.40x
The difference between the two selling prices is given as ₹5:
SP
2
−SP
1
=5
1.40x−1.20x=5
0.20x=5
x=
0.20
5
=25
So, the Cost Price (CP) of one pen is ₹25.
The initial selling price was:
SP
1
=1.20×25=30
Hence, the initial selling price of one pen was ₹30.
Initially, profit is 20%.
Initial Selling Price (SP
1
)=1.20x
If she charges ₹5 more, the new profit becomes 40%.
New Selling Price (SP
2
)=1.40x
The difference between the two selling prices is given as ₹5:
SP
2
−SP
1
=5
1.40x−1.20x=5
0.20x=5
x=
0.20
5
=25
So, the Cost Price (CP) of one pen is ₹25.
The initial selling price was:
SP
1
=1.20×25=30
Hence, the initial selling price of one pen was ₹30.