Mohit sell a table at a profit of 25%. If the reduces its selling price by Rs 240, then he suffers a loss of 5%. What are the initial selling price (in Rs) of the table ?

Options

A. 800
B. 1000
C. 1040
D. 1120

Answer

To solve the problem step by step, let's break it down:

### Step 1: Define the Cost Price (CP)
Let the Cost Price (CP) of the table be Rs. 100. This is a convenient assumption that will help us calculate the selling prices easily.

### Step 2: Calculate the Initial Selling Price (SP1)
Since Mohit sells the table at a profit of 25%, we can calculate the Initial Selling Price (SP1) using the formula:
\[ SP1 = CP + (Profit \% \times CP) \]
Substituting the values:
\[ SP1 = 100 + (25\% \times 100) = 100 + 25 = Rs. 125 \]

### Step 3: Calculate the Selling Price after Reduction (SP2)
If Mohit reduces the selling price by Rs. 240, the new selling price (SP2) becomes:
\[ SP2 = SP1 - 240 \]
Substituting the value of SP1:
\[ SP2 = 125 - 240 = Rs. -115 \]
(Note: This calculation seems incorrect due to the assumption. Let's correct it.)

### Step 4: Define the Selling Price with Loss
When Mohit reduces the selling price, he suffers a loss of 5%. Therefore, the selling price (SP2) can also be expressed as:
\[ SP2 = CP - (Loss \% \times CP) \]
Substituting the values:
\[ SP2 = 100 - (5\% \times 100) = 100 - 5 = Rs. 95 \]

### Step 5: Set up the Equation
We know from the previous steps:
\[ SP1 - 240 = SP2 \]
Substituting the values we have:
\[ SP1 - 240 = 95 \]
Now, we can solve for SP1:
\[ SP1 = 95 + 240 = Rs. 335 \]

### Step 6: Conclusion
Thus, the initial selling price of the table is Rs. 335.

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