The profit earned by selling an article for ₹ 900 is twice the loss incurred by selling the same article for ₹ 450. At what price should the article be sold to make a profit of 25%?

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SSC GD Constable (2022) Official Paper (Held On : 13 Feb 2023 Shift 4)
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  1. ₹ 950
  2. ₹ 650
  3. ₹ 750 
  4. ₹ 850

Answer (Detailed Solution Below)

Option 3 : ₹ 750 
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Detailed Solution

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Given:

Selling price when profit was earned = ₹900

Selling price when loss was incurred = ₹450

Concept:

Profit = Selling Price - Cost Price

Loss = Cost Price - Selling Price

Solution:

⇒ Profit when selling price is ₹900 = ₹900 - Cost Price

⇒ Loss when selling price is ₹450 = Cost Price - ₹450

⇒ From the given problem, the profit is twice the loss. Therefore, ₹900 - Cost Price = 2(Cost Price - ₹450)

⇒ Solving the above equation gives Cost Price = ₹600

⇒ Now we have to find the selling price to make a profit of 25%, so Selling Price = Cost Price + 25% of Cost Price

⇒ 600 + (600 × 25%) 

⇒ 600 + 150 = 750

Therefore, the selling price should be ₹750.

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