If selling price of an article is reduced by 60%, then there is a loss of 10% on cost price. The initial profit percent was = ?

A. 70%

B. 80%

C. 100%

D. 125%

Answer: Option D

Solution(By Examveda Team)

Let the initial SP = 100
After reducing 60% SP = 100 - 60 = 40
According to the question if the product is sold on 40 there is a loss of 10%.
Then CP = $$\frac{{40}}{{90}} \times 100 = \frac{{400}}{9}$$
Profit = $$100 - \frac{{400}}{9} = \frac{{500}}{9}$$
∴ Profit % = $$\frac{{\frac{{500}}{9}}}{{\frac{{400}}{9}}} \times 100 = 125\% $$