Multiple choice

The difference between the cost price and selling price of a commodity is Rs. 240. If the profit is 20%, then the selling price is:

  1. Rs. 1200

  2. Rs. 1440

  3. Rs. 1800

  4. Rs. 2440
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Profit = 20% of CP. SP - CP = 240. 0.2 * CP = 240 => CP = 1200. SP = CP + 240 = 1200 + 240 = 1440.

AI explanation

Using the profit percentage formula, (Profit / Cost Price) x 100 = 20, we know the profit is 20% of the cost price. Since the difference between the selling price and cost price is the profit of Rs. 240, the cost price is 240 / 0.20 = Rs. 1200. Adding the profit to the cost price gives the selling price: 1200 + 240 = Rs. 1440.

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