Question

Given below are two statements:

Statement I: The difference between the cost price and sale price of an article is ₹ 240. If the profit is 20%, then the selling price is ₹ 1440.

Statement II: If the cost price of 10 DVDs is equal to the selling price of 7 DVDs, then the gain percent is $42\frac{6}{7}\%$ .

In the light of the above statements, choose the most appropriate answer from the options given below:

Accepted Answer

A. Statement I: Profit $= 	ext{SP} - 	ext{CP} = 240$. Since Profit is $20\%$, $20\% 	ext{ of } 	ext{CP} = 240 \Rightarrow 	ext{CP} = 1200$. $	ext{SP} = 	ext{CP} + 	ext{Profit} = 1200 + 240 = 1440$. Correct. Statement II: $10 	imes 	ext{CP} = 7 	imes 	ext{SP} \Rightarrow \frac{	ext{SP}}{	ext{CP}} = \frac{10}{7}$. Gain Percentage $= \frac{10 - 7}{7} 	imes 100 = \frac{300}{7}\% = 42\frac{6}{7}\%$. Correct.

Profit and Loss Statements

Explanation

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