A bicycle is sold at a profit of 10%. Had it been sold for $10 less, the profit would have been 5% only. What is the cost price of the bicycle?
The Usual Method
Let the cost price of the bicycle be $‘x’.
Hence selling price with 10% profit = 1.1x.
But had it been sold for $10 less, profit = 5% only.
Hence, 1.1x – 10 = 1.05x
Estimated Time to arrive at the answer = 30 seconds.
By reducing $10 from selling price the profit reduces by 5%, hence $10 is equivalent to 5%, so 100% will be equivalent to $200.
Estimated Time to arrive at the answer = 5 seconds.