Shortcut Trick
Difference in Selling Prices = 1,498 − 1,300 = ₹198.
Ratio of Gain to Loss = 125 : 100 = 5 : 4.
Value of 1 unit = 198 ÷ (5 + 4) = 198 ÷ 9 = ₹22.
Cost Price (CP) = 1,300 + (4 × 22) = 1,300 + 88 = ₹1,388.
New SP for 25% gain = 1,388 × 1.25 = ₹1,735.
∴ The correct answer is ₹1,735.
Alternate Method
Given: SP1 = ₹1,498, SP2 = ₹1,300, Gain = 1.25 × Loss.
Formula: CP = SP − Gain = SP + Loss
⇒ Let Loss = L
⇒ Gain = 1.25L
⇒ 1,498 − CP = 1.25L and CP − 1,300 = L
⇒ (1,498 − CP) ÷ (CP − 1,300) = 1.25 ÷ 1 = 5 ÷ 4
⇒ 4 × (1,498 − CP) = 5 × (CP − 1,300)
⇒ 5,992 − 4CP = 5CP − 6,500
⇒ 9CP = 12,492
⇒ CP = ₹1,388
⇒ New SP = 1,388 × (125/100) = 1,388 × (5/4)
⇒ New SP = 347 × 5 = ₹1,735
∴ The correct answer is ₹1,735.
Additional Information
Profit and Loss Basic Relations
Profit = SP − CP and Loss = CP − SP. CP is always considered as the 100% base for calculations.
Marked Price and Discount
Discount is always calculated on Marked Price (MP). SP = MP × (100 − Discount%)/100.
Successive Profit/Loss
If there are successive percentage changes a and b, the effective change is [a + b + (ab/100)]%.