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| GMAT Tutor |
Joined: Tue Dec 28, 2004 2:34 am Posts: 79 Location: Chennai, India
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Assume a cost price and then work backwards.
Let us say the cost price of the camera is $100. Then his initial selling price is $110.
His new cost would be $90. He will make a profit of 25% as stated if he had sold it for 90 + 25% of 90 = 90 + 22.5 = 112.5
i.e., his new selling price is $2.5 more than the old SP.
However, the question states that the new SP is $10 more than the old SP. Therefore, your assumption of CP ($100) has to be revised by the same factor of 4. So, the CP should be $400.
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