The difference between the cost price and the selling price of an article is ₹240. If the profit is 20%, what is the selling price?

Introduction / Context:The difference SP − CP is profit in rupees. With a known profit percentage, we can back-solve for CP and then compute SP straightforwardly.

Given Data / Assumptions:

• Profit = SP − CP = ₹240.
• Profit% on CP = 20%.

Concept / Approach:If profit% is 20%, then profit = 0.20 * CP = 240, so CP = 240 / 0.20 = 1,200. Then SP = CP + profit = 1,200 + 240, or use SP = 1.20 * CP directly.

Step-by-Step Solution:CP = 240 / 0.20 = ₹1,200SP = 1.20 * 1,200 = ₹1,440

Verification / Alternative check:SP − CP = 1,440 − 1,200 = ₹240, consistent with the given difference.

Why Other Options Are Wrong:₹1,400/₹1,240/₹1,200 do not maintain the 20% profit and ₹240 difference simultaneously.

Common Pitfalls:Applying 20% on SP or on the rupee difference instead of on CP.

Final Answer:₹1440