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The marked price of an article is 50% above cost price. When marked price is increased by 20% and selling price is increased by 20%, the profit doubles. If original marked price is Rs. 300, then original selling price is
  • a)
    Rs. 200
  • b)
    Rs. 250
  • c)
    Rs. 240
  • d)
    Rs. 275
  • e)
    None of these
Correct answer is option 'B'. Can you explain this answer?
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Given data:
Marked price = Rs. 300 (original)
Cost price = x (assume)
Profit = (300-x)/x * 100 = 50% (as marked price is 50% above cost price)

Increase in marked price and selling price:
New marked price = 300 * (1 + 20/100) = Rs. 360
New selling price = x * (1 + 20/100) = 1.2x

Profit doubles:
New profit = (360 - x)/(x) * 100 = 100% (as profit doubles)
360 - x = 2x
x = Rs. 120 (cost price)

Original selling price:
Selling price = (300 - 120) = Rs. 180
But selling price is increased by 20%, so
Original selling price = 180/(1 + 20/100) = Rs. 150

Therefore, the original selling price is Rs. 150 (option B).
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The marked price of an article is 50% above cost price. When marked price is increased by 20% and selling price is increased by 20%, the profit doubles. If original marked price is Rs. 300, then original selling price isa)Rs. 200b)Rs. 250c)Rs. 240d)Rs. 275e)None of theseCorrect answer is option 'B'. Can you explain this answer?
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