Selling the same article at Rs 900 yields a profit equal to twice the loss incurred when selling it at Rs 490. At what price should it be sold to earn a 25% profit?

Difficulty: Easy

Correct Answer: Rs 783.33

Explanation:


Introduction / Context:
A linear relation links profit at one selling price to loss at another when the cost price (CP) is fixed. Once CP is found, any target-gain selling price is straightforward.


Given Data / Assumptions:

  • Selling price (SP₁) = Rs 900 with profit P.
  • Selling price (SP₂) = Rs 490 with loss L.
  • P = 2L (profit is double the loss).
  • We want SP for 25% profit.


Concept / Approach:
Let CP = x. Then P = 900 − x and L = x − 490. Given P = 2L, solve for x. Then required price for 25% profit is 1.25x.


Step-by-Step Solution:

900 − x = 2(x − 490)900 − x = 2x − 980 ⇒ 1880 = 3x ⇒ x = 1880/3 = 626.666…Price for 25% profit = 1.25x = (5/4) × 1880/3 = 2350/3 = Rs 783.33 (approx).


Verification / Alternative check:
Check P at Rs 900 is ≈ 273.33; L at Rs 490 is ≈ 136.67; indeed P ≈ 2L.


Why Other Options Are Wrong:
Rs 750, 775, 800, 825 do not equal 2350/3 and would not give exactly 25% on the computed CP.


Common Pitfalls:
Setting P = L instead of P = 2L or computing 25% profit on the selling price instead of CP.


Final Answer:
Rs 783.33

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