Shaloo sold a mobile phone for ₹1,950 at a loss of 25%. At what price should she have sold it to get a profit of 30% ?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹3,380
Profit and loss are worked out on the cost price, so the cost price is found first from the sale at a loss.
At a 25% loss she gets 75% of the cost price: \(0.75\times\mathrm{CP}=1950\)
Cost price: \(\displaystyle\mathrm{CP}=\frac{1950}{0.75}=2600\)
For a 30% profit she must get 130% of the cost price: \(1.3\times2600=3380\)
Shortcut:
The two selling prices are 75% and 130% of the same cost price, so the new price is \(\displaystyle1950\times\frac{130}{75}=26\times130=3380\).