Given:
A sells an article to B making a profit of 1/5 of his outlay
B sells it to C gaining 20%
C sells it for Rs. 600 and incurs a loss of 1/6 of his outlay
Concept used:
S.P = C.P × (100 + P%)/100
S.P = C.P × (100 – L%)/100
Where,
S.P → Selling price
C.P → Cost price
P% → Profit%
L% → Loss%
Calculations:
Let C.P of the product for A be 100x
Profit gained by A = 100x × 1/5 = 20x
S.P of the product for A = 100x + 20x = 120x
C.P of the product for B = S.P of the product for A
C.P of the product for B = 120x
S.P of the product for B = 120x × (100 + 20)/100 = 144x
C.P of the product for C = S.P of the product for B
C.P of the product for C = 144x
Loss incurred by C = 144x × 1/6 = 24x
S.P of product for C = 144x – 24x = 120x
According to the question
⇒ 120x = 600
⇒ x = 5
C.P of the product for A = 100x = 500
∴ C.P of the product for A be Rs. 500