Switching from loss to a small profit: If a watch is sold for ₹ 120, there is a loss of 15%. To realize a profit of 2% on the same watch, at what price should it be sold?
Aptitude
Profit and Loss
Difficulty: Easy
Choose an option
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A₹ 144
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B₹ 175
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C₹ 185
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D₹ 165
Answer
Correct Answer: ₹ 144
Explanation
Introduction / Context:Recover the cost price from a loss scenario and then apply the desired small profit percentage to get the new selling price target.
Given Data / Assumptions:
- SP_loss = ₹ 120 at 15% loss ⇒ SP = 0.85 * CP.
- Desired profit = 2% on CP.
Concept / Approach:CP = SP_loss / 0.85. Then SP_target = 1.02 * CP.
Step-by-Step Solution:CP = 120 / 0.85 ≈ ₹ 141.176...SP_target = 1.02 * 141.176... ≈ ₹ 144
Verification / Alternative check:Check: 2% of 141.176... is ≈ 2.8235; adding to CP gives ≈ 144, aligning with the exact integer option.
Why Other Options Are Wrong:
- ₹ 165 / ₹ 175 / ₹ 185: far exceed the 2% margin over the derived CP.
Common Pitfalls:
- Applying 2% to the loss-selling price rather than to the CP.
Final Answer:₹ 144