A watch is sold at 5% loss. If the cost price had been 20% more and selling price Rs.115 less, there would have been 40% loss. What is the cost price?

Correct option is B

Formula Used:

​$$\text{Selling Price} = \text{Cost Price} \times \left(1 + \frac{\text{Percentage Profit}}{100}\right)$$​​

​$$\text{Selling Price} = \text{Cost Price} \times \left(1 - \frac{\text{ Loss}}{100}\right)$$​​

Solution:
Let the cost price of the article be Rs. 100x
SP of the article if loss 5% = $$100x \times \left(\frac{95}{100}\right) = \text{Rs. } 95x$$​​
If cost price more than 20%, then cost price of the article = $$100x \times \left(\frac{120}{100}\right) = \text{Rs. } 120x$$​​
According to the question

​$$120x \times \left(\frac{60}{100}\right) = 95x - 115 \\72x = 95x - 115 \\95x - 72x = 115 \\23x = 115$$​​
x = 5
So, the cost price of the article = 100 × 5 = Rs. 500