Profit and Loss — Two articles are bought for ₹ 1500 and ₹ 1000. One is sold at a 20% gain. At what price should the other be sold to realize a 16% profit on the whole transaction?

Introduction / Context:
To achieve an overall target profit across multiple items, compute the required total revenue, subtract what is already realized from the first sale, and the remainder is the needed selling price for the second item.

Given Data / Assumptions:

• CP1 = ₹ 1500; CP2 = ₹ 1000; Total CP = ₹ 2500.
• Item 1 sold at +20% ⇒ SP1 = 1.20 * 1500 = 1800.
• Target overall profit = 16% on 2500 ⇒ Required total SP = 2500 * 1.16.

Concept / Approach:
SP_total_required = 2500 * 1.16 = 2900. Therefore, SP2_required = 2900 − SP1. This delivers the exact selling price needed for item 2 to meet the goal.

Step-by-Step Solution:

Verification / Alternative check:
Profit = (1800 + 1100 − 2500) = 400 ⇒ 400/2500 * 100 = 16% (as required).

Why Other Options Are Wrong:
1200, 1150, and 1250 lead to overall profits different from 16%; 1300 overshoots the target.

Common Pitfalls:
Applying the 16% on each item individually rather than on the combined cost; mixing up which item was sold at 20%.

Final Answer:
₹ 1100