CAT 2024 Slot 1 QA Question 22: 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

Question

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

Accepted Answer

Let the original cost price be $C$.
Original selling price = $1.4C$
If the cost had been 40% less, the new cost price would be $0.6C$.
The new selling price would be Rs 5 less than the original selling price, and the profit would be 50%.
$1.4C - 5 = 1.5	imes 0.6C$
$\Rightarrow 1.4C - 5 = 0.9C$
$\Ri

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