Profit and Loss – Target price for desired profit given a loss price: There would be a 10% loss if rice is sold at Rs 5.40 per kg. At what price per kg should it be sold to earn a 20% profit?

Introduction / Context:
From a given loss-selling price, compute cost price, then apply the desired profit percentage to find the required selling price.

Given Data / Assumptions:

• SP at 10% loss = Rs 5.40
• Desired gain = 20%

Concept / Approach:
For loss L%: SP = (1 - L/100) * CP ⇒ CP = SP / (1 - L/100). For target gain G%: Required SP = (1 + G/100) * CP.

Step-by-Step Solution:
CP = 5.40 / 0.90 = 6.00Required SP = 6.00 * 1.20 = 7.20

Verification / Alternative check:
At Rs 7.20, gain = 1.20 on CP 6 ⇒ 20%.

Why Other Options Are Wrong:
6.48, 7.02, 6.84 do not produce 20% gain on CP 6. Rs 6.00 is just CP.

Common Pitfalls:
Applying both percentages to SP rather than CP.

Final Answer:
Rs 7.20