Last visit was: 24 Apr 2026, 04:07 It is currently 24 Apr 2026, 04:07
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,809
Own Kudos:
810,934
 [18]
Given Kudos: 105,869
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,809
Kudos: 810,934
 [18]
An article is sold at 20% profit. If its cost price is increased by $5 25 Jun 2019, 02:19
1
Kudos
Add Kudos
16
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

95% (hard)

Question Stats:

49% (02:57) correct 51% (03:25) wrong based on 150 sessions

History

Date
Time
Result
Not Attempted Yet
An article is sold at 20% profit. If its cost price is increased by $50 and at the same time, if its selling price is also increased by $30, the percentage of profit decreases by \(\frac{10}{3}\)%. Find the cost price.

(A) 650
(B) 850
(C) 1000
(D) 3000
(E) 4500
ShowHide Answer
Official Answer
B
Most Helpful Reply
User avatar
PKN
User avatar
Joined: 01 Oct 2017
Last visit: 11 Oct 2025
Posts: 809
Own Kudos:
1,637
 [6]
Given Kudos: 41
Status:Learning stage
WE:Supply Chain Management (Energy)
Posts: 809
Kudos: 1,637
 [6]
An article is sold at 20% profit. If its cost price is increased by $5 25 Jun 2019, 12:45
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Bunuel
An article is sold at 20% profit. If its cost price is increased by $50 and at the same time, if its selling price is also increased by $30, the percentage of profit decreases by \(\frac{10}{3}\)%. Find the cost price.

(A) 650
(B) 850
(C) 1000
(D) 3000
(E) 4500
Show more

Initial scenario:-
Let the CP be 'x'.
SP=1.2x

Amended scenario:-
CP=x+50
SP=1.2x+30

%Profit=\(20-\frac{10}{3}=\frac{50}{3}%\)
Or, \(\frac{1.2x+30-x-50}{x+50}*100=\frac{50}{3}\)
Or, 6(0.2x-20)=x+50
Or, 1.2x-120=x+50
Or, 0.2x=170
\(x=\frac{1700}{2}=850\)

Ans. (B)
General Discussion
avatar
enochan319
avatar
Joined: 26 Nov 2020
Last visit: 01 Jan 2021
Posts: 1
Own Kudos:
1
 [1]
Posts: 1
Kudos: 1
 [1]
An article is sold at 20% profit. If its cost price is increased by $5 10 Dec 2020, 15:37
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Why are we dividing by the cost price? Isn't profit equal to (Selling Price - Cost Price)/(Selling Price)?
User avatar
ScottTargetTestPrep
User avatar
Target Test Prep Representative
Joined: 14 Oct 2015
Last visit: 23 Apr 2026
Posts: 22,283
Own Kudos:
26,532
Given Kudos: 302
Status:Founder & CEO
Affiliations: Target Test Prep
Location: United States (CA)
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 22,283
Kudos: 26,532
An article is sold at 20% profit. If its cost price is increased by $5 16 Dec 2020, 12:10
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
An article is sold at 20% profit. If its cost price is increased by $50 and at the same time, if its selling price is also increased by $30, the percentage of profit decreases by \(\frac{10}{3}\)%. Find the cost price.

(A) 650
(B) 850
(C) 1000
(D) 3000
(E) 4500
Show more
Solution:

Let the original cost of the article be c. Since the article is sold at a 20% profit, the profit is 0.2c, and the sale price is 1.2c.

If the cost is increased by $50 and the selling price is increased by $30, then the new profit is (1.2c + 30) - (c + 50) = 0.2c - 20.

We are also told that the profit decreases by 10/3 %; thus, the new profit is 20 - 10/3 = 50/3 %.

Recall that the new cost is c + 50 and the new profit is 0.2c - 20; thus, in terms of c, the percentage of profit is [(0.2c - 20) / (c + 50)] * 100. Let’s set this expression equal to 50/3:

[(0.2c - 20)/(c + 50)] * 100 = 50/3

(0.2c - 20)/(c + 50) = 50/300 = 1/6

1.2c - 120 = c + 50

0.2c = 170

c = 170/0.2 = $850

Answer: B
avatar
AnkitHRD
avatar
Joined: 04 Mar 2020
Last visit: 23 Oct 2021
Posts: 36
Own Kudos:
24
Given Kudos: 36
Location: India
Concentration: General Management, Finance
GPA: 3.5
WE:Securities Sales and Trading (Finance: Investment Banking)
Posts: 36
Kudos: 24
An article is sold at 20% profit. If its cost price is increased by $5 16 Dec 2020, 12:38
Kudos
Add Kudos
Bookmarks
Bookmark this Post
enochan319
Why are we dividing by the cost price? Isn't profit equal to (Selling Price - Cost Price)/(Selling Price)?
Show more

Profit = SP - CP

or

Profit % = (SP-CP)/CP * 100

Hope it helps!
User avatar
babyulikeit
User avatar
Joined: 04 Jul 2024
Last visit: 14 May 2025
Posts: 24
Own Kudos:
28
Given Kudos: 34
Location: India
GMAT Focus 1: 695 Q85 V85 DI83
GMAT Focus 1: 695 Q85 V85 DI83
Posts: 24
Kudos: 28
An article is sold at 20% profit. If its cost price is increased by $5 01 Oct 2024, 12:26
Kudos
Add Kudos
Bookmarks
Bookmark this Post
ScottTargetTestPrep
Bunuel
An article is sold at 20% profit. If its cost price is increased by $50 and at the same time, if its selling price is also increased by $30, the percentage of profit decreases by \(\frac{10}{3}\)%. Find the cost price.

(A) 650
(B) 850
(C) 1000
(D) 3000
(E) 4500
Solution:

Let the original cost of the article be c. Since the article is sold at a 20% profit, the profit is 0.2c, and the sale price is 1.2c.

If the cost is increased by $50 and the selling price is increased by $30, then the new profit is (1.2c + 30) - (c + 50) = 0.2c - 20.

We are also told that the profit decreases by 10/3 %; thus, the new profit is 20 - 10/3 = 50/3 %.

Recall that the new cost is c + 50 and the new profit is 0.2c - 20; thus, in terms of c, the percentage of profit is [(0.2c - 20) / (c + 50)] * 100. Let’s set this expression equal to 50/3:

[(0.2c - 20)/(c + 50)] * 100 = 50/3

(0.2c - 20)/(c + 50) = 50/300 = 1/6

1.2c - 120 = c + 50

0.2c = 170

c = 170/0.2 = $850

Answer: B
Show more
ScottTargetTestPrep Bunuel
Can you please explain how to figure % profit decrease by 10/3% as (20-10/3)% and not (20 - (10/3% of 20))?
Thank you!
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,809
Own Kudos:
810,934
Given Kudos: 105,869
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,809
Kudos: 810,934
An article is sold at 20% profit. If its cost price is increased by $5 02 Oct 2024, 00:20
Kudos
Add Kudos
Bookmarks
Bookmark this Post
babyulikeit
ScottTargetTestPrep
Bunuel
An article is sold at 20% profit. If its cost price is increased by $50 and at the same time, if its selling price is also increased by $30, the percentage of profit decreases by \(\frac{10}{3}\)%. Find the cost price.

(A) 650
(B) 850
(C) 1000
(D) 3000
(E) 4500
Solution:

Let the original cost of the article be c. Since the article is sold at a 20% profit, the profit is 0.2c, and the sale price is 1.2c.

If the cost is increased by $50 and the selling price is increased by $30, then the new profit is (1.2c + 30) - (c + 50) = 0.2c - 20.

We are also told that the profit decreases by 10/3 %; thus, the new profit is 20 - 10/3 = 50/3 %.

Recall that the new cost is c + 50 and the new profit is 0.2c - 20; thus, in terms of c, the percentage of profit is [(0.2c - 20) / (c + 50)] * 100. Let’s set this expression equal to 50/3:

[(0.2c - 20)/(c + 50)] * 100 = 50/3

(0.2c - 20)/(c + 50) = 50/300 = 1/6

1.2c - 120 = c + 50

0.2c = 170

c = 170/0.2 = $850

Answer: B
ScottTargetTestPrep Bunuel
Can you please explain how to figure % profit decrease by 10/3% as (20-10/3)% and not (20 - (10/3% of 20))?
Thank you!
Show more

I agree, the phrasing is confusing, and the question could have been framed more clearly to avoid ambiguity.
Moderators:
Bunuel
Math Expert
109809 posts
Krunaal
Tuck School Moderator
853 posts