The difference between cost price (CP) and selling price (SP) of an article is Rs 240. If the profit is 20%, then the selling price is
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 1440
Step 1: Let CP = x
Profit = 20% → SP = CP + 20% of CP = $x + 0.2x = 1.2x$
We are given:
$SP - CP = 240$
Substitute SP = 1.2x:
$1.2x - x = 0.2x = 240$
$x = \frac{240}{0.2} = 1200$
Step 2: Find SP
$SP = 1.2 \times 1200 = 1440$