A machine was bought for Rs. 1,500 and a repairing charge of Rs. 100 was paid afterwards. At what price should it be sold to gain a profit of 25%?
- AOption (a)
Rs. 2,040
- BOption (b)
Rs. 1,960
- COption (c)
Rs. 2,000
- DOption (d)
Rs. 1, 920
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Correct answer
Rs. 2,000
Why this answer is correct
Shortcut Trick
Total effective Cost Price (CP) = 1500 + 100 = Rs. 1,600.
To gain 25% Profit, the Selling Price (SP) is 125% of the CP.
SP = 1,600 × (125/100) = 1,600 × (5/4).
SP = 400 × 5 = Rs. 2,000.
∴ The correct answer is Rs. 2,000.
Alternate Method
Given:
Purchase price of the machine = Rs. 1,500
Repairing charge paid = Rs. 100
Desired Profit percentage = 25%
Formula used:
Total CP = Purchase Price + Overhead Expenses
Selling Price (SP) = CP × [1 + (Profit% / 100)]
Calculations:
⇒ Total Cost Price = 1,500 + 100 = Rs. 1,600
⇒ Profit amount = 25% of 1,600
⇒ Profit amount = (25 / 100) × 1,600 = 400
⇒ Selling Price = Total Cost Price + Profit
⇒ Selling Price = 1,600 + 400 = Rs. 2,000
∴ The correct answer is Rs. 2,000.
Additional Information
Overhead Expenses
Expenses like repairs, freight, or transportation are always added to the purchase price to calculate the effective Cost Price.
Profit and Loss Percentage
Profit % = (Profit ÷ CP) × 100 | Loss % = (Loss ÷ CP) × 100. Both are always calculated on the Cost Price unless stated otherwise.
Fraction Conversion
To simplify calculations, use fraction equivalents: 25% = 1/4, 20% = 1/5, 50% = 1/2.


