A man buys an item for Rs. 1200 and sells it at a loss of 20%; what is the selling price of the item after incurring this loss?

Introduction / Context:
This is a straightforward profit and loss calculation involving a known cost price and a stated percentage loss. The task is to compute the selling price after reducing the cost price by the given loss percentage. Questions like this are basic but essential for building strong foundations in percentage and commercial arithmetic.

Given Data / Assumptions:

• Cost price (CP) of the item = Rs. 1200.
• Loss percentage on the item = 20% of cost.
• No other expenses or hidden costs are mentioned.
• We need to find the selling price (SP) after the loss.

Concept / Approach:
When an item is sold at a loss of L%, the selling price is (100 - L)% of the cost price. In decimal form, SP = CP * (1 - L / 100). Here L = 20, so SP = CP * 0.80. By multiplying 1200 by 0.80, we get the required selling price. This simple formula is widely used in profit and loss questions.

Step-by-Step Solution:
Step 1: Cost price of the item = Rs. 1200.Step 2: Given loss percentage = 20%.Step 3: Selling price as a percentage of cost = 100% - 20% = 80% of cost.Step 4: Express 80% in decimal form as 0.80.Step 5: Selling price SP = CP * 0.80 = 1200 * 0.80.Step 6: Compute 1200 * 0.80 = Rs. 960.Step 7: Therefore, the item is sold for Rs. 960 after a 20% loss.

Verification / Alternative check:
We can also compute the loss amount directly. Loss = 20% of 1200 = 0.20 * 1200 = Rs. 240. Subtracting this loss from cost price gives SP = 1200 - 240 = Rs. 960. Both methods agree and confirm that Rs. 960 is the correct selling price corresponding to a 20% loss.

Why Other Options Are Wrong:

• Rs. 660: This would represent a loss of 1200 - 660 = 540, which is a 45% loss.
• Rs. 760: This would be a loss of 440, which is about 36.67% loss.
• Rs. 860: This is a loss of 340, which corresponds to about 28.33% loss.

Common Pitfalls:

• Subtracting 20 rupees instead of 20% of the cost price.
• Accidentally adding the loss percentage instead of subtracting it.
• Confusing percentage of cost with percentage of selling price, which can lead to reversed calculations.

Final Answer:
The selling price of the item after a 20% loss on Rs. 1200 is Rs. 960.