On selling a jute bag for ₹ 48, Ashmitha incurs a loss of 20%. In order to make a profit of 20% what should be the selling price of the jute bag?

Correct option is C

Given:

- Selling price at 20% loss = ₹ 48
- Loss % = 20%
- Desired profit % = 20%

Solution:

SP = ₹ 48, Loss = 20%
CP =  $$\frac{48 }{ (1 - \frac{20}{100}) }= \frac{48 }{ 0.8} = 60$$​​
Calculate new SP for 20% profit:
​$$SP = 60 × (1 + \frac{20}{100}) = 60 × 1.2 = 72$$​​
The selling price to make a 20% profit should be ₹ 72.