Equal profit–loss from two selling prices Selling at Rs 425 gives the same profit as the loss when selling at Rs 355. What is the cost price?
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ARs 385
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BRs 390
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CRs 395
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DRs 400
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ERs 405
Answer
Correct Answer: Rs 390
Explanation
Introduction / Context:When profit from one selling price equals loss from another, the cost price lies exactly midway between those selling prices. We can also show this algebraically.
Given Data / Assumptions:
- Profit at SP1 = Rs 425 equals loss at SP2 = Rs 355.
- Find cost price (CP).
Concept / Approach:If 425 - CP = CP - 355, then CP is the average of 425 and 355. Solve directly or via averages.
Step-by-Step Solution:Set 425 - CP = CP - 355.2 × CP = 425 + 355 = 780.CP = 780 / 2 = 390.
Verification / Alternative check:Profit at 425: 425 - 390 = 35. Loss at 355: 390 - 355 = 35. Equal as given.
Why Other Options Are Wrong:385 or 395 breaks the equality; 400 and 405 give unequal profit and loss.
Common Pitfalls:Adding instead of averaging, or mixing up which side is profit or loss.
Final Answer:Rs 390