Question 1
Question: What is the cost price of the product?
Statement (1): Selling price is Rs. 1200 and profit is 20%.
Statement (2): If the selling price were 10% higher, the profit would be 32%.
Statement (1): SP = 1200, profit = 20%, so CP = 1200/1.2 = Rs. 1000. SUFFICIENT alone.
Statement (2): Let original CP = C, original SP = S.
Profit = (S - C)/C
If SP increases by 10%: new SP = 1.1S, new profit = 32%
(1.1S - C)/C = 0.32
1.1S - C = 0.32C
1.1S = 1.32C
S = 1.2C
This gives ratio S:C = 6:5, but no absolute value. NOT SUFFICIENT alone.
Therefore, only Statement (1) alone is sufficient.
Statement (2): Let original CP = C, original SP = S.
Profit = (S - C)/C
If SP increases by 10%: new SP = 1.1S, new profit = 32%
(1.1S - C)/C = 0.32
1.1S - C = 0.32C
1.1S = 1.32C
S = 1.2C
This gives ratio S:C = 6:5, but no absolute value. NOT SUFFICIENT alone.
Therefore, only Statement (1) alone is sufficient.