By selling an article for ₹1,200, a shopkeeper suffered a loss of 20%. What was the cost price of that article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹1,500
If the shopkeeper suffered a loss of 20%, then the selling price would be of the value which is 80% less than that of the cost price.
Let the cost price of the article = x
Cost Price = Selling Price × 100/(100 - loss %)
Thus, (80/100) of x = 1200
⇒ x = (100/80) × 1200 = 1500
Thus, the cost price would be ₹1500