Radha sells her scooty for ₹50000 at a loss of 20%. At what price should she sell her scooty to make a profit of 10%?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹68750
Profit and loss per cent are always worked out on the cost price, so the cost price is found first from the loss, and the new selling price from it.
At a 20% loss, the selling price is 80% of the cost price: \(0.8\times\text{CP}=50000\)
\(\displaystyle \text{CP}=\frac{50000}{0.8}=62500\)
For a 10% profit, SP \(=110\%\) of \(62500=1.1\times62500=68750\)
Shortcut: The old selling price is 80% of the cost and the new one 110%, so the new price is \(\displaystyle 50000\times\frac{110}{80}=68750\) in one step.