If a saree is sold for Rs. 2880, the seller will incur a loss of 10%. At what price should he sell it to gain a profit of 20%?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 3840
Profit and loss per cent are worked out on the cost price, so the cost price is found first from the selling price at a loss.
A loss of 10% means the saree sells at 90% of the cost price: \(\displaystyle \text{CP}=\frac{2880}{90}\times100=\) Rs. 3200
For a profit of 20% it must sell at 120% of the cost price: \(\displaystyle \text{SP}=\frac{120}{100}\times3200=\) Rs. 3840
Shortcut: The two selling prices are in the ratio 120 : 90 of the same cost price.
\(\displaystyle \text{SP}=2880\times\frac{120}{90}=2880\times\frac{4}{3}=\) Rs. 3840