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
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
Solution
Original cost price = rupees
Original selling price = rupees
A 40% profit means the selling price is 1.4 times the cost price
Profit = 40% of cost price = rupees
Selling price = Cost price + Profit
Therefore:
The problem states "product had cost 40% less":
If original cost = , then 40% less means we subtract 40% from
New cost price = rupees
The selling price is "5 rupees less":
New selling price = rupees
Since the new profit is 50%:
Original selling price = rupees