Question

A shopkeeper sold an article for Rs. 667.5 and incurred a loss of 11%. At what price should he sell the article to make a profit of 8%?
1. Rs. 750
2. Rs. 810
3. Rs. 800
4. Rs. 820

Answer 1

Correct Answer - Option 2 : Rs. 810

Given:

Selling price = RS. 667.5

Loss% = 11%

Formula used:

When there is a loss of r%;

CP = SP[100/(100 - Loss%)]

When there is a profit of r%;

SP = CP[(100 + p%)/100]

Calculation:

Cost price of the article = 667.5[100/(100 - 11)]

= 667.5 × (100/89)

= Rs. 750

∴ SP for 8% profit = 750[(100 + 8)/100]

= 750 × (108/100)

= Rs. 810

Alternative Method:

Let the CP = x

∵ There is a loss;

∴ 89% of x = 667.5

⇒ x = 667.5/(89%)

∴ For 8% profit;

SP = [667.5/(89%)] × 108%

= Rs. 810