Answer:
The cost price is Rs.500
Explanation:
<em>I'll approach this question by taking the statements in the question, one after the other</em>
Let the cost price be represented by CP
From the first statement:
Sanjay made a loss of 25%
The selling price (SP) is as follows;

Convert percent to fraction

Get decimal equivalent



From the second statement:
If the selling price was increased by 175%, Sanjay would make a profit of 10%
Hence; The new selling price is

The selling price can also be calculated from the profit

Convert percent to fraction

Get decimal equivalent



Equate both values of SP (SP = SP)

Collect Like Terms


Divide both sides by 0.35


<em>Hence, the cost price is Rs.500</em>