Question

Instead of selling an earphone at 20% profit, a shopkeeper sells it at 25% loss for Rs. 1500, At what price he wanted to sell it to earn the profit?
1. Rs. 2000
2. Rs. 2400
3. Rs. 2800
4. Rs. 2500

Answer 1

Correct Answer - Option 2 : Rs. 2400

Given:

Selling price = Rs. 1500,

loss% = 25%

Profit% = 20%

Formula used:

S.P. = C.P. × (100 – L%)/100

S.P. = C.P. × (100 + P%)/100

Where

S.P. → Selling price

CP → Cost price

L% → Loss %

P% ⇒ Profit %

Calculations:

S.P. = C.P. × (100 – L%)/100

So, CP = (SP × 100)/(100 – L%)

The cost price = (1500 × 100)/(100 – 25) = 1500 × (100/75)

⇒ CP = Rs.2000

For 20% profit

S.P. = C.P. × (100 + P%)/100

⇒ S.P. = 2000 × (100 + 20)/100 = Rs.2400

∴ The required selling price of the product is Rs. 2400.