An article is sold at a 20% loss. If the selling price was ₹400 more, there would have been a 5% gain. What is the cost price of the article?
Show answer & explanation
Correct answer: B
Explanation
Let the cost price of the item be ₹x.
Selling price at a 20% loss = 0.8x
If the selling price increases by ₹400,
then the new selling price = 1.05x
1.05x − 0.8x = 400
0.25x = 400
x = ₹1600