'A' sells an article to 'B' at a profit of 20% and 'B' sells it to 'C' at a profit of 25%. If 'C' pays Rs. 1,200, the cost price of the article originally (in Rs.) is

Options

A. 700
B. 600
C. 1000
D. 800

Answer

To find the original cost price of the article that 'A' bought, we can follow these steps:

### Step 1: Understand the Selling Prices and Profits
- 'A' sells the article to 'B' at a profit of 20%.
- 'B' sells the article to 'C' at a profit of 25%.
- 'C' pays Rs. 1,200 for the article.

### Step 2: Set Up the Cost Price for 'A'
Let the cost price of the article for 'A' be Rs. 100 (we can use any base value to simplify calculations).

### Step 3: Calculate Selling Price from 'A' to 'B'
- Since 'A' sells at a profit of 20%, the selling price from 'A' to 'B' can be calculated as follows:
\[ \text{Selling Price from A to B} = \text{Cost Price of A} + \text{Profit} \]
\[ = 100 + (20\% \text{ of } 100) = 100 + 20 = Rs. 120 \]

### Step 4: Calculate Selling Price from 'B' to 'C'
- 'B' sells the article at a profit of 25%. Therefore, the selling price from 'B' to 'C' is:
\[ \text{Selling Price from B to C} = \text{Cost Price of B} + \text{Profit} \]
\[ = 120 + (25\% \text{ of } 120) = 120 + 30 = Rs. 150 \]

### Step 5: Relate Selling Price from 'B' to 'C' to the Given Price
- We know that 'C' pays Rs. 1,200 for the article. Thus, we can set up the equation:
\[ \text{Selling Price from B to C} = Rs. 150 \]
\[ \text{If } 150 \text{ units correspond to } Rs. 1200, \text{ then we can find the value of 1 unit.} \]
\[ \text{Value of 1 unit} = \frac{1200}{150} = Rs. 8 \]

### Step 6: Calculate the Original Cost Price of 'A'
- Since we assumed the cost price of 'A' to be Rs. 100 (which corresponds to Rs. 8 per unit), we can find the original cost price:
\[ \text{Original Cost Price of A} = 100 \text{ units} \times Rs. 8 = Rs. 800 \]

### Conclusion
The original cost price of the article for 'A' is Rs. 800.