Profit and Loss — Selling an article at ₹ 64 results in a 20% loss. At what selling price would the trader get a 20% profit on the same article?
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ARs. 96
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BRs. 98
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CRs. 94
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DRs. 99
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ERs. 92
Answer
Correct Answer: Rs. 96
Explanation
Introduction / Context: Sequentially changing the selling price from a loss scenario to a profit scenario involves first recovering the cost price (CP), then applying the desired profit percentage on CP to compute the new selling price (SP).
Given Data / Assumptions:
- SP_loss = ₹ 64 corresponds to a 20% loss.
- Target: 20% profit on the same CP.
Concept / Approach: With 20% loss, SP = 0.80 * CP ⇒ CP = SP / 0.80. With 20% profit, SP_new = 1.20 * CP. Chain these to find the required SP.
Step-by-Step Solution:
CP = 64 / 0.80 = 80 SP_new = 1.20 * 80 = 96 Therefore, the required selling price is ₹ 96Verification / Alternative check: On CP = 80, SP = 96 yields profit% = (96 − 80)/80 * 100 = 20% (as required).
Why Other Options Are Wrong: 98, 94, 99, and 92 correspond to profit percentages different from 20% when CP = 80.
Common Pitfalls: Adding 40 to ₹ 64 directly (treating 20% of 64), which is incorrect since the percentage must be applied to CP, not to the previous SP.
Final Answer: Rs. 96