A person sells 12 pens for ₹480 and suffers a loss equal to the selling price of 3 pens. What is the cost price of one pen?
Show answer & explanation
Correct answer: A
Explanation
Given:
Selling price of 12 pens = ₹480
Loss = equal to the selling price of 3 pens
Formula:
Loss = Purchase price − Selling price
Selling price of 1 pen = 480 / 12 = 40
Selling price of 3 pens = 3 × 40 = 120
Total purchase price = Total selling price + Loss
= 480 + 120 = 600
Cost price of 1 pen = 600 / 12 = ₹50