Question

If a watch is sold for Rs. 2880 the seller will face 10% loss. At what price (in Rs.) should he sell to gain 10% profit?
1. Rs. 3500
2. Rs. 3520
3. Rs. 5470
4. Rs. 3420

Answer 1

Correct Answer - Option 2 : Rs. 3520

Given:

Selling price = Rs. 2880,

loss% = 10%

Profit% = 10%

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 = (2880 × 100)/(100 –10) = 2880 × (100/90)

⇒ CP = 3200

For 10% profit

S.P. = C.P. × (100 + P%)/100

⇒ S.P. = 3200 × (100 + 10)/100 = 3520

∴ The required selling price of the product is Rs. 3520.