Profit earned by selling an article for Rs.1060 is 20% more than the loss incurred by selling the article for Rs.950. At what price should the article be sold to earn a 20% profit?

Rs. 1200

The correct answer is Option (3) → Rs. 1200

Let the cost price of the article be $C$.

Step 1: Express profit and loss

• Selling at Rs. 1060 → Profit = $1060 – C$
• Selling at Rs. 950 → Loss = $C – 950$

Given:

$\text{Profit} = 1.2 \times \text{Loss}$

$1060 - C = 1.2 (C - 950)$

$1060 - C = 1.2C – 1140$

$1060 + 1140 = 1.2C + C$

$2200 = 2.2C$

$C = 1000$

Step 2: Selling price for 20% profit

$\text{SP} = C + 0.2C = 1.2 \times 1000 = 1200$