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 = ?

Answer: Option D

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 % = $$\frac{\frac{500}{9}}{\frac{400}{9}}\times 100=125\%$$