An article is sold to Mr. X at a profit of 20%. Mr. X sells it to Mr. Y at a profit of 25%. If Mr. Y pays ₹225 for the article, then what was the cost price for the original seller?

Correct option is D

Given:

An article is sold to Mr. X at a profit of 20%.

Mr. X sells it to Mr. Y at a profit of 25%.

Mr. Y pays ₹225 for the article.

Formula Used:

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

Solution:

Let the original cost price of the article be 'CP'.

Mr. X's selling price = $$\text{CP} \times \left(1 + \frac{\text{20}}{100}\right)$$​ = 1.20CP

Mr. Y's cost price = 1.20CP

Mr. Y's selling price = Mr. Y's cost price $$\times \left(1 + \frac{\text{25}}{100}\right)$$

​ = 1.20CP $$\times$$​ 1.25 = 1.50CP

Equate Mr. Y's selling price to the given value:

1.50CP = ₹225

Now,  CP = $$\frac{₹225}{1.50}$$​ = ₹150

Therefore, the cost price for the original seller was ₹150.

Thus, option (d) is right answer.