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Profit Percentage Adjustment

CAT 2024 Slot 1 · Quantitative Ability · Easy · Profit and Loss

This is an easy Quantitative Ability question from the CAT 2024 Slot 1 paper. It tests Profit and Loss. The full answer key and a step-by-step explanation are below — try it yourself first, then reveal the solution.

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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

  1. A.

    10

  2. B.

    15

  3. C.

    20

  4. D.

    14

Answer

D

Explanation

Let original cost price be CC. Original selling price S=1.4CS = 1.4C. New cost price = 0.6C0.6C. New selling price = S−5=1.4C−5S - 5 = 1.4C - 5.

Given new profit is 50%50\%: 1.4C−5=1.5×0.6C=0.9C1.4C - 5 = 1.5 \times 0.6C = 0.9C 0.5C=5  ⟹  C=100.5C = 5 \implies C = 10

Original selling price S=1.4×10=14S = 1.4 \times 10 = 14 rupees.

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