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
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A wholesale dealer purchased two coats at the same price. One was sold
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Say the cost price of each coat was $x. So, cost price of both coats = $2xMikrislac wrote: ↑Sun Aug 02, 2020 4:03 pmA 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
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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