Question

On selling an article for Rs. 7200, a person loses 16.67% of its selling price. At what price should he sell it to gain 20% on its cost price?
1. 12500
2. 10080
3. 15460
4. 11540

Answer 1

Correct Answer - Option 2 : 10080

Given:

Selling price, SP of the article = Rs. 7200

Loss % = 16.67%

Formula used:

Profit or Gain = Selling price – Cost Price

Loss = Cost Price – Selling Price

Profit percentage = (Profit/Cost Price) × 100

Loss percentage = (Loss/Cost price) × 100

Calculation:

Loss % = 16.67% = 1/6

which implies,

When SP is Rs.6, Loss = Rs. 1

⇒ CP = Rs. 7

But SP is Rs. 7200

⇒ 6 units ≡  Rs. 7200

⇒ 1 unit ≡  Rs. 1200

CP = Rs. 7 × 1200

⇒ Rs. 8400

SP of article to gain 20% = 120 × 8400/100

⇒ 10080

∴ the correct answer is Rs. 10080