The profit earned when an article is sold for Rs. 800 is 20 times the loss incurred when it is sold for Rs. 275. At what price should the article be sold if it is desired to make a profit of 25%.
- AOption (a)
375
- BOption (b)
475
- COption (c)
300
- DOption (d)
500
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Correct answer
375
Why this answer is correct
Shortcut Trick
Ratio of Profit to Loss = 20 : 1.
Total difference in SP = 800 − 275 = Rs. 525.
Value of 21 parts (Total Gap) = 525 ⇒ 1 part (Loss) = 525 ÷ 21 = Rs. 25.
Cost Price = Lower SP + Loss = 275 + 25 = Rs. 300.
New Selling Price for 25% profit = 300 × (125 ÷ 100) = Rs. 375.
∴ The correct answer is Rs. 375.
Alternate Method
Given:
Selling Price 1 (SP1) = Rs. 275 (sold at a loss)
Selling Price 2 (SP2) = Rs. 800 (sold at a profit)
Profit obtained = 20 × Loss incurred
Formula Used:
Loss = Cost Price (CP) − Selling Price
Profit = Selling Price − Cost Price (CP)
Calculations:
⇒ Profit at SP2 = 20 × Loss at SP1
⇒ 800 − CP = 20 × (CP − 275)
⇒ 800 − CP = 20CP − 5500
⇒ 20CP + CP = 800 + 5500
⇒ 21CP = 6300
⇒ CP = 6300 ÷ 21 = Rs. 300
⇒ To make a 25% profit, the new selling price must be 125% of the Cost Price.
⇒ New Selling Price = CP × (100 + Profit%) ÷ 100
⇒ New Selling Price = 300 × (125 ÷ 100)
⇒ New Selling Price = 300 × 1.25 = Rs. 375
∴ The correct answer is Rs. 375.
Additional Information
Marked Price & Discount
Discount is always calculated on the Marked Price (MP) of an article. The fundamental formula is: Discount % = (Discount ÷ MP) × 100.
Successive Discounts
If two successive discounts of a% and b% are given, the equivalent single discount percentage is calculated as: a + b − (a × b ÷ 100).
Dishonest Dealer
When a dealer claims to sell goods at cost price but uses a false weight, the actual Profit % = [Error ÷ (True Weight − Error)] × 100.















