Question

Profit and Loss - Find the Cost of Rice
There would be 10% loss if rice is sold at Rs.5.40 per kg. At what cost per kg should it be sold to earn a profit of 20%?

Answer 1

We know the formula for loss%. Its (C.P. - S.P.)/C.P.

Since we have been given the S.P in case of a loss of 10% as Rs. 5.40/kg.

So we have (C.P. - 5.40)/C.P. = 10/100. Solving this gives us C.P. = Rs.6/kg

In order to make a profit of 20%, the rice should be sold at Rs.7.20/kg