The profit earned by selling an article for Rs 832 is equal to the loss incurred when the article is sold for Rs 448. What should be the selling price (in Rs) to make a profit of 10%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 704
Original Selling Price = Rs. 832
New Selling Price = Rs. 448
Profit earned by selling the article for Rs. 832 = Loss incurred by selling the article at Rs. 448
Profit = SP - CP
Loss = CP - SP
SP = CP × {(100 + Profit%)/100} (where, SP = Selling Price, CP = Cost Price)
According to the question -
Profit earned by selling the article for Rs. 832 = Loss incurred by selling the article at Rs. 448
Original SP - CP = CP - New SP
832 - CP = CP - 448
2 × CP = 832 + 448
CP = 1280/2
CP = Rs. 640
The Selling Price for making 10% profit -
SP = CP × {(100 + Profit%)/100} = 640 × {(100 + 10)/100} = 640 × (110/100) = 64 × 11 = Rs. 704