Difficulty: Medium
Correct Answer: ₹ 150
Explanation:
Introduction / Context:
Problems of this type compare two nearby scenarios with small tweaks to cost and selling price, resulting in a different profit percentage. By modeling both cases with variables, one can set up an equation that eliminates the selling price and reveals the true cost price. The original statement had a conflicting percentage; under the Recovery-First Policy, interpreting it as 18 3/4% (i.e., 18.75%) makes the data consistent and solvable.
Given Data / Assumptions:
Concept / Approach:
Equate SP′ from both expressions and solve for x (the original CP). This approach leverages linear relations between cost and selling price and uses percentage conversions accurately.
Step-by-Step Solution:
SP′ = 1.1875 * (0.96x) = 1.14xBut SP′ = SP₁ + 6 = 1.10x + 6Therefore, 1.10x + 6 = 1.14x ⇒ 6 = 0.04x ⇒ x = ₹150
Verification / Alternative check:
At CP = ₹150: actual SP₁ = ₹165 (10% gain). Alternate CP′ = ₹144 and alternate SP′ (1.1875 of 144) = ₹171. SP₁ + 6 = 165 + 6 = 171 — consistent with the scenario.
Why Other Options Are Wrong:
₹130/₹140/₹160 do not satisfy the equation 1.10x + 6 = 1.14x under the recovered 18.75% condition.
Common Pitfalls:
Applying the 4% to selling price instead of cost; reading the percentage as 11 3/4% or 118 3/4% which makes the problem inconsistent; failing to convert 18 3/4% to 0.1875 decimal form accurately.
Final Answer:
₹ 150
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