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

1440

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

$SP = 1.2 \times 1200 = 1440$