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A loss of 25% is incurred in selling an item for Rs.2400. What should be the selling price if there should be a profit of 25%?
Question

A loss of 25% is incurred in selling an item for Rs.2400. What should be the selling price if there should be a profit of 25%?

A.

Rs. 4000

B.

Rs. 2700

C.

Rs. 3600

D.

Rs. 4200

Correct option is A

Given:
Selling price at 25% loss = Rs. 2400
Loss percentage = 25%
Desired profit percentage = 25%
Formula Used:
Cost Price (CP)=Selling Price1Loss %100\text{Cost Price (CP)} = \frac{\text{Selling Price}}{1 - \frac{\text{Loss \%}}{100}}​​
New Selling Price (SP)=CP×(1+Profit %100)\text{New Selling Price (SP)} = \text{CP} \times \left( 1 + \frac{\text{Profit \%}}{100} \right)​​
Solution:
CP=2400125100=24000.75=3200\text{CP} = \frac{2400}{1 - \frac{25}{100}} = \frac{2400}{0.75} = 3200​​
the new selling price (SP) for a 25% profit:
SP=3200×(1+25100)=3200×1.25=4000\text{SP} = 3200 \times \left( 1 + \frac{25}{100} \right) = 3200 \times 1.25 = 4000​​
Thus, the selling price should be Rs. 4000.

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