A shopkeeper incurs a loss of 20% after selling a machine for 4800. In order to gain a profit of 20%, at what price should the shopkeeper sell the same machine?

Correct option is A

Given:

Loss % = 20

Selling price of machine = Rs. 4800

Solution:

Cost price = selling price + 0.80 cost price

=> 0.80 cost price = 4800

=> CP = 4800/0.80

=> 6000

To earn a 20% profit selling price = 1.2 cost price

=> SP = 1.2 × 6000

=> Rs. 7200

∴ SP of the machine is Rs. 7200