Correct Answer - Option 2 : Rs.1260

**GIVEN:**

5% loss by selling a watch = Rs.1140

**FORMULA USED:**

SP = CP × (100 ± Profit/loss)/100

**CALCULATION:**

SP = CP × (100 ± Profit/loss)/100

⇒ 1140 = CP × (100 - 5)/100

⇒ 1140 = CP × 95/100

⇒ CP = 1200

⇒ SP = CP × (100 ± Profit/loss)/100

⇒ SP = 1200 × 105/100

⇒ SP =1260

**∴ Required Selling Price to earn 5% profit is Rs.1260**