The difference between cost price and selling price of an article is Rs. 120. If profit percentage is 10 percent, then what is the selling price?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 1320.
According to the question:
the cost price be ( cost price = x).
Selling Price = Cost Price + Profit
the profit is 10% of the cost price,
Selling Price = x + 0.10x = 1.10x
SellingPrice - Cost Price = 120
⇒ 1.10x - x = 120
⇒ 0.10x = 120
⇒ x = 120 / 0.10= 1200
Selling Price = 1.10 × 1200 = 1320
The selling price is Rs. 1320.