Correct Answer - Option 2 : Rs. 1300

**Given**

Loss = 7%

Selling price = Rs. 1813.5

**Concept**

Profit = Selling price - Cost price

And loss = Cost price - Selling price

**Calculation**

Let the cost price of good for Arjun is Rs.x

Profit = Selling price - Cost price

⇒ 50x/100 = 1813.5 - x

⇒ -1813.5 = -x - 50x/100

⇒ -1813.5 = -150x/100

⇒ x = 1209

Selling price of good for Karan is Rs.1209

Cost price of good for Karan is Rs.y

Loss = Cost Price - Selling price

⇒ 7% of y = y - 1209

⇒ 93y/100 = 1209

⇒ y = 1300

** Cost price of goods for Karan is Rs. 1300**