Question

The profit earned when an article is sold for rs.800 is 20 times the loss incurred when it is sold for rs.275. at what price should the article be sold if it is desired to make a profit of 25%

Answer 1

Case (i)
Selling price of an article = Rs 800
Let the cost price of the article = x
Profit = Rs (800 - x)

Case (ii)
Selling price of the article = Rs 275
Loss = Rs (x - 275)

⇒ (800 - x) = 20 (x - 275)
⇒ 800 - x = 20x - 5500
⇒ 21x = 6300
⇒ x = 300

So, the cost prise of the article = Rs 300

Case (iii)
Cost prise = Rs 300
Profit = 25%

Selling price = CP x (100 + Gain%) / 100
                   = 300 x (100 + 25) / 100
                   = 375
∴ The article should be sold for Rs 375 to make a profit of 25%.

Answer 2

Let the cost price be CP
SP1=800
SP2=275
and it is given that,
profit=20 x loss
SP1-CP=20(CP-SP2)
CP=(SP1+20*SP2)/21
CP=300

Now when sold at 25% profit

SP=125% of CP=125% of 300
=375(Ans.)