A profit earned when an item is sold for ₹4,000 is ten times the loss incurred when it is sold for ₹ 2,790. At what price should the item be sold if it is desired to make a profit of 20%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹3,480.
Let cost price = x
Profit at 4000 = 4000 – x
Loss at 2790 = x – 2790
4000 – x = 10(x – 2790)
⇒ 4000 – x = 10x – 27900
⇒ 11x = 31900
⇒ x = 2900
20% profit SP = 2900 × 1.2 = 3480