Question

The difference between the selling price and cost price of an article is\[Rs.200\]. If the profit is\[25\% \], then the selling price of the article is?
A.\[1000\]
B.600
C.800
D.1200

Answer 1

Hint: We will use the formula for the calculation of the selling price when profit is given. The difference between the selling price and the cost price is the profit made from selling that particular article.

Complete step-by-step answer:
According to the question, we are given,
The difference between the selling price and the cost price\[ = Rs.200\]
The profit percentage on the cost price\[ = 25\% \]
So, Selling Price – Cost Price\[ = Rs.200\]
The selling price of the article if it is calculated using the profit percentage
\[ = \]Cost Price \[ + 25\% \times \]Cost Price
The profit earned on the article
\[ = \]Cost Price \[ + 25\% \times \]Cost Price – Cost Price
\[ = 25\% \times \]Cost Price
\[ = \dfrac{{25}}{{100}}\]Cost Price
Now, when we subtract the cost price from the selling price, if we get a positive value then we get the profit earned on the article.
So, according to this, we get
The profit earned = the difference between the selling price and the cost price
\[ \Rightarrow \dfrac{{25}}{{100}}\]Cost Price\[ = 200\]
\[ \Rightarrow \]Cost Price\[ = 200 \times \dfrac{{100}}{{25}}\]
\[ \Rightarrow \]Cost Price\[ = Rs.800\]
Therefore, the selling price of the article
\[
   = {\text{Cost Price}} + 200 \\
   = Rs.(800 + 200) \\
   = Rs.1000 \\
 \]
Thus, the answer is option A.

Note: We need to remember that the difference between the selling price and the cost price is either a profit or a loss, depending on the sign of the value. We can also solve the question by directly applying the formula of profit percentage, that is, \[{\text{Profit}}\% = \dfrac{{{\text{Profit}} \times 100}}{{{\text{Cost Price}}}}\].