A man sells two articles. The cost price of the first article is equal to the selling price of the second article. The first article is sold at a profit of 20% and the second article is sold at a loss of 20%. What is the ratio of the selling price of the first article and the cost price of the second article? a. 27:29 b. 25:24 c. 29:27 d. 24:25
Question
A man sells two articles. The cost price of the first article is equal to the selling price of the second article. The first article is sold at a profit of 20% and the second article is sold at a loss of 20%. What is the ratio of the selling price of the first article and the cost price of the second article?
a. 27:29
b. 25:24
c. 29:27
d. 24:25
Solution
Let's denote the cost price of the first article (which is also the selling price of the second article) as x.
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The selling price of the first article is 120% of its cost price, because it was sold at a profit of 20%. So, the selling price of the first article is 1.2x.
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The cost price of the second article is 125% of its selling price, because it was sold at a loss of 20%. So, the cost price of the second article is 1.25x.
The ratio of the selling price of the first article to the cost price of the second article is therefore 1.2x : 1.25x.
This simplifies to 24:25.
So, the answer is d. 24:25.
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