Profit and Loss Question 3 - CAT 2024
The selling price of a product is fixed to ensure a 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:
Step-by-Step Explanation
Let the original Cost Price be X.
- Original SP: 1.4X (to ensure a 40% profit).
- New CP: 40% less than original → 0.6X.
- New SP: 5 rupees less than original → 1.4X − 5.
We are given that the new profit is 50%, which means New SP = 1.5 × New CP:
1.4X − 5 = 1.5 × 0.6X
1.4X − 5 = 0.9X
0.5X = 5
X = 10
The original Cost Price is Rs. 10.
The question asks for the original selling price:
Original SP = 1.4 × 10 = Rs. 14
Correct Option: B
💡 FundaMakers Tip:
A classic trap in competitive exams is finding X (the Cost Price) and choosing that option immediately (Option C is 10). Always double-check what the question finalizes. Reread the last line: it asks for the original selling price, not the cost price.