A man sold an item for Rs 33750 and incurred a loss of 25%. At what price should he sell the item to have a profit of 25%?
Answer & explanation
Correct answer: option 4
When there is a loss of 25% while selling an item for Rs 33750,
Cost price = Selling price x $\frac{100}{75}$
= 33750 x $\frac{100}{75}$
= 45000
To have a profit of 25%, selling price = 45000 x $\frac{125}{100}$
= Rs 56250