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Ram sells a suitcase to Mohan at a 20% profit. Mohan sells it to Shyam at a 40% profit. If Shyam pays ?1,430 for it, then the price at which Ram bought it is:
875
870
880
851.19
- Let's work backward from the price Shyam paid, which is ?1,430.
- Mohan sold the suitcase to Shyam at a 40% profit.
- To find Mohan’s cost price, divide ?1,430 by 1.40 (which represents 140% due to the 40% profit).
- Mohan’s cost price = ?1,430 / 1.40 = ?1,021.43.
- Mohan also sold the suitcase at a profit, specifically a 20% profit when buying from Ram.
- To find Ram's cost price, divide Mohan's cost price by 1.20 (which represents 120% due to the 20% profit).
- Ram’s original cost price = ?1,021.43 / 1.20 = ?851.19.
- Correct Answer: Option 4 - 851.19
By: Parvesh Mehta ProfileResourcesReport error
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