Profit and Loss — The selling price (SP) of an article is ₹ 2220 and the profit earned is 20%. Compute the Cost Price (CP) by reversing the gain relation SP = (1 + 20%) * CP.

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Solve this multiple-choice question and choose the correct option.

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Introduction / Context: Recovering CP from SP when a gain% is known is a routine reversal of the percentage increase formula. It is widely used in profit-and-loss aptitude questions. Given Data / Assumptions: SP = ₹ 2220 Gain% = 20% SP = 1.20 * CP Concept / Approach: Invert the multiplier: CP = SP / 1.20. Substitute and compute accurately. Step-by-Step Solution: CP = 2220 / 1.20Compute: 2220 / 1.20 = 1850Thus CP = ₹ 1850 Verification / Alternative check: Forward check: SP = 1.20 * 1850 = 2220, confirming correctness. Why Other Options Are Wrong: ₹ 1750, ₹ 1876, ₹ 1776, and ₹ 1800 do not yield SP = ₹ 2220 under a 20% profit when multiplied by 1.20. Common Pitfalls: Subtracting 20% from SP or computing profit% on SP. Gain is applied on CP; to find CP from SP, divide by 1.20. Final Answer: ₹ 1850

Profit and Loss — The selling price (SP) of an article is ₹ 2220 and the profit earned is 20%. Compute the Cost Price (CP) by reversing the gain relation SP = (1 + 20%) * CP.

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