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A shopkeeper makes a profit of $20 %$ on selling a transistor radio for $Rs 840$ . For how much should he sell another transistor radio, whose cost price is $Rs . 25$ more than the first one, to make the same percentage profit?

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Rs . 870

Rs . 910

Rs . 960

Rs . 1010

answer is A.

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Detailed Solution

Given, for first transistor,
S.P

=

Rs.

840

Profit

= 20

%

Now, with this S.P. and for Profit %, we know that,

SP - CP = P % of C . P .

\Rightarrow 840 - C . P . = 0.20 C . P .

\Rightarrow 1.20 C . P . = 840

\Rightarrow C . P . =

Rs.

700

And for another transistor,

C . P =

Rs.

700 +

Rs.

25

[from given]

\Rightarrow C . P =

Rs.

725

Profit

= 20

%

So, we know that,

\frac{SP - CP}{CP} \times 100 = P %

\Rightarrow \frac{S . P . - 725 .}{725} \times 100 = 20

\Rightarrow S . P . - 725 = 145

\Rightarrow S . P . =

Rs.

870

Thus, the S.P is Rs.870.
Therefore, the correct option is 1.

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