Recovering cost price from selling price and profit percent A radio is sold for Rs 1980 at a gain of 10%. What was its cost price?

Aptitude Profit and Loss Difficulty: Easy
Choose an option
  • A
    Rs 1782
  • B
    Rs 1800
  • C
    Rs 2178
  • D
    Rs 1650
  • E
    Rs 1880

Answer

Correct Answer: Rs 1800

Explanation

Introduction / Context:Given SP and profit %, cost price is found by dividing by (1 + profit%). This is a standard reverse-percentage operation in profit and loss.

Given Data / Assumptions:

  • SP = Rs 1980.
  • Profit % = 10% = 0.10.

Concept / Approach:SP = CP × (1 + profit%). Therefore, CP = SP / 1.10.

Step-by-Step Solution:CP = 1980 / 1.10 = 1800.

Verification / Alternative check:10% of 1800 = 180; SP = 1800 + 180 = 1980 (confirms).

Why Other Options Are Wrong:1782 is 10% off 1980 (wrong base); 2178 is higher than SP; 1650 and 1880 fail the 10% forward check.

Common Pitfalls:Taking 10% of SP rather than CP when reversing, or dividing by 0.10 instead of 1.10.

Final Answer:Rs 1800

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