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Question : By selling an article at Rs. 425, a shopkeeper had a loss of 15%. At what price should be sell the article to make a profit of 20%?

Option 1: Rs. 800

Option 2: Rs. 1000

Option 3: Rs. 400

Option 4: Rs. 600


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Rs. 600


Solution : If the shopkeeper sold the article for Rs. 425 and incurred a loss of 15%, it means that Rs. 425 represents 85% (100% – 15%) of the cost price.
Let the cost price as C.
⇒ 425 = 0.85 × C
To make a profit of 20%, the shopkeeper should sell the article at 120% of the cost price.
The selling price for a 20% profit = 1.20 × C = $\frac{1.20 × 425}{0.85}$ = Rs. 600
Hence, the correct answer is Rs. 600.

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