Question

The profit earned after selling an article for Rs. 625 is same as the loss incurred after selling the article for Rs. 435. The cost price of the article is:
A. 520
B. 530
C. 540
D. 550

Answer 1

Hint: Here, we apply the formula that:
Profit = Selling Price – Cost Price
And, Loss = Cost Price – Selling Price

Complete step-by-step answer:
Let us suppose the cost price of the article to be Rs. x.
We are given that the profit earned after selling the article for Rs. 625 is the same as the loss incurred after selling the article for Rs. 435.
Now, Profit earned after selling the article for Rs. 625 = 625 – Cost Price = 625 - x
Also, Loss incurred after selling the article for Rs. 435 = Cost Price – 435 = x – 435
As both of them are equal thus,
$625-x=x-435$
Rearranging the terms, we get,
$2x=625+435=1060$
$\implies x=\dfrac{1060}{2}=530$
Thus, the Cost Price of the article is Rs. 530.
Hence, option B is correct.

Note: In this type of questions, where cost price or selling price is to be calculated we apply the basic formulas of loss and profit and then according to given conditions calculate the required value.