The profit earned after selling an item for ₹797 is the same as the loss incurred after selling the same item for ₹635. What is the cost price of the item?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹716
Profit is the selling price minus the cost price, and loss is the cost price minus the selling price. When the two are equal, the cost price lies midway between the two selling prices.
Profit \(=797-\text{CP}\) and loss \(=\text{CP}-635\)
The profit equals the loss: \(797-\text{CP}=\text{CP}-635\), so \(2\,\text{CP}=797+635=1432\)
\(\text{CP}=1432\div2=\) ₹716