A loss of 12.5% is incurred when an article is sold for Rs 630. What is the profit or loss percentage if the article is sold for Rs 840?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Profit of 16(2/3)%.
Given:
A loss of 12.5% is incurred when an article is sold for Rs 630
Formula used:
Selling price = Cost price(1 - loss%) ---- (1)
Profit = Selling price - cost price
Profit% = [Profit/Cost price] × 100
Calculations:
Let the cost price be 100x
According to the question,
Using equation (1),
⇒ 630 = 100x(1 - 12.5%)
⇒ 630 = 87.5x
⇒ x = 7.2
Cost price = 100x = 720
Using equation (2), we get
Profit = 840 - 720 = 120
Using equation (3),
Profit% = [120/720] × 100 = 16(2/3)%