Correct Answer - Option 1 : Rs.720
Given:
When he sold at 20% loss, Selling price = Rs. 480
Profit % = 20%
Formula used:
Profit = S.P – C.P
Loss = C.P – S.P
Profit % = (profit/C.P) × 100
Loss % = (loss/C.P) × 100
Calculation:
Let the cost price be 'x'.
Selling Price initially = Rs. 480
Loss = 20% of x
⇒ Loss = x/5
S.P = C.P + loss
⇒ S.P = x – x/5
⇒ (4x)/5 = 480
⇒ x = 600
Profit = 20% of 600
⇒ Profit = Rs. 120
New selling price = C.P + profit
⇒ New selling price = 600 + 120
⇒ Rs. 720
∴ The new selling price when 20% profit gain is Rs. 720.