cat 2024 Question 21

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

Accepted Answer

Let us fix the Cost Price of the product to be X, and the Selling Price of the product to be 1.4X, since it is given that it is fixed to have a profit of 40%.

If the CP has been 40% less, making the CP 0.6X,

And the selling price is 5 rupees less, making it 1.4X-5

Profit will be 50%,

So, $1.5\left(0.6X\right)=1.4X-5$

$0.9X=1.4X-5$

$0.5X=5$

$X=10$

Original selling price will be 14.

Question 21.

Question Explanation