Switching from loss to a small profit: If a watch is sold for ₹ 120, there is a loss of 15%. To realize a profit of 2% on the same watch, at what price should it be sold?

Introduction / Context:
Recover the cost price from a loss scenario and then apply the desired small profit percentage to get the new selling price target.

Given Data / Assumptions:

• SP_loss = ₹ 120 at 15% loss ⇒ SP = 0.85 * CP.
• Desired profit = 2% on CP.

Concept / Approach:
CP = SP_loss / 0.85. Then SP_target = 1.02 * CP.

Step-by-Step Solution:
CP = 120 / 0.85 ≈ ₹ 141.176...SP_target = 1.02 * 141.176... ≈ ₹ 144

Verification / Alternative check:
Check: 2% of 141.176... is ≈ 2.8235; adding to CP gives ≈ 144, aligning with the exact integer option.

Why Other Options Are Wrong:

• ₹ 165 / ₹ 175 / ₹ 185: far exceed the 2% margin over the derived CP.

Common Pitfalls:

• Applying 2% to the loss-selling price rather than to the CP.

Final Answer:
₹ 144