Mikrislac wrote: ↑

Sun Aug 02, 2020 4:03 pm

A wholesale dealer purchased two coats at the same price. One was sold at a profit of 20% and the other was sold at a price which was $1520 less than the price at which the first one was sold. If the overall profit earned by selling both the coats was 1%, what was the cost price of one coat?

A. $3600

B. $4000

C. $4800

D. $5000

E. $5200

Say the cost price of each coat was $x. So, cost price of both coats = $2x

Thus, the sale price of the first coat = 1.2x;
Thus, the sale price of the second coat = 12.x – 1,520

Sale price of both coats = 2.4x – 1,520

Percent profit = [{(2.4x – 1,520) – 2x}/2x]100% = 1%

Upon solving, we get x = $4,000

Correct answer: B

Hope this helps!

-Jay
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