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A person sold an item at a loss of 7%. Had he sold the item at a gain of 7.5%, he would have received Rs. 87 more than his selling price. The cost price of the item is:

ARs. 500
BRs. 550
CRs. 600 ✓ Correct
DRs. 650
Correct answer: (C) Rs. 600
Explanation

The cost price is Rs 600.

Difference in outcomes spans 7% loss to 7.5% gain.

That gap = (7 + 7.5)% of CP = 14.5% of CP.

14.5% of CP = 87.

CP = 87 / 0.145 = Rs 600.

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