The profit on selling an article for ₹1,100 is equal to three times the amount of loss on selling it for ₹700. To gain 12.5%, the article must be sold for:
Answer & explanation
Correct answer: option 1
First S.P. = 1100
Second SP. = 700
Let CP = m
According to the question
(1100 – m) = 3 (m – 700)
1100 – m = 3m – 2100
3m + m = 2100 + 1100
4m = 3200
m = 800
SP of the article = 800 × \(\frac{9}{8}\) = Rs. 900