The cost price of articles X and Y is the same. Article X is sold at 20% profit and article Y is sold for Rs. 126 less than the s…

Question

The cost price of articles X and Y is the same. Article X is sold at 20% profit and article Y is sold for Rs. 126 less than the selling price of X. If the net profit by selling both the articles is 14%, then what is the cost price (in Rs.) of each article?

1. A. 1,260
2. B. 840
3. C. 1,080
4. D. 1,050 (Correct answer)

Correct Answer

Option D — 1,050

Detailed Solution & Explanation

The correct answer is 1,050.

Key Points

• Let CP = x. SP of X = 1.2x. SP of Y = 1.2x-126. Total SP = 2.4x-126. Net 14% on 2x: 2.28x.
• 2.4x-126 = 2.28x => 0.12x = 126 => x = 1050.