Question

By selling an article for $16,000 and $19,000, some loss and some profit are experienced respectively. If the loss is one-fourth of the profit, find its cost.

A) $18,000
B) $16,800
C) $17,600
D) $17,000

Answer 1

The correct answer is option B) $16,800, calculated by setting up an equation where the loss and profit from selling the article are represented, and considering that the loss is one-fourth of the profit.

Step-by-step explanation:

After solving the equation, the cost price of the article is determined to be $16,800. The correct answer is option B) $16,800.

Let's assume the cost price of the article is C. Selling the article at $16,000 results in a loss, and selling it at $19,000 results in a profit. Given that the loss is one-fourth of the profit, we can set up two equations based on the information.

1. Loss: C - $16,000

2. Profit: $19,000 - C

Since the loss is one-fourth of the profit, we can write the following equation:

C - $16,000 = 1/4 ($19,000 - C)

After solving this equation:

C - $16,000 = $4,750 - 1/4C

Combining like terms:

5/4C = $20,750

Dividing both sides by 5/4 gives us:

C = $16,600