Correct Answer: INR 420

Solution : Selling price = INR 1200
Profit = selling price – cost price
Profit = 1200 – cost price -----------(i)
Selling price = INR 240
Loss = cost price – selling price
Loss = cost price – 240 ------------(ii)
Profit = 15 × loss
⇒ 1200 – cost price = 15(cost price – 240)
⇒ 1200 – cost price = 15 × cost price – 3600
⇒ 4800 = 16 × cost price
⇒ Cost price = INR 300
Profit = 40% of cost price = 0.4 × 300 = 120
So, the selling price = cost price + profit = 300 + 120 = INR 420
Hence, the correct answer is INR 420.