Question

When an article is sold for `$703`, loss incurred is `25%` less than the profit earned on selling it at `$836`. What is the selling price of the article when it earns a profit of `20%`?

Answer 1

see a solution process below;

Explanation:

Let the cost price be `x`

loss incurred when sold at `$703 rArr (x - 703)`

profit earned when sold at `$836 rArr (836 - x)`

Therefore;

Since its a loss of `25%`, `(100 - 25)% = 75%`

`(x - 703) = 75/100(836 - x)`

`(x - 703) = 3/4(836 - x)`

`4(x - 703) = 3(836 - x)`

`4x - 2812 = 2508 - 3x`

Collecting like terms..

`4x + 3x = 2508 + 2812`

`7x = 5320`

Divide both sides by `7`

`(7x)/7 = 5320/7`

`(cancel7x)/cancel7 = 5320/7`

`x = 5320/7`

`x = 760`

`x = $760`

selling price of the article at `20%`, `(100 + 20)% = 120%`

`sp = 760 xx 120/100`

`sp = 91200/100`

`sp = $912`

Hence, the selling price of the article when it earns a profit of `20%` is `$912`