A shopkeeper gains 20% in place of 16% loss if the selling price of an article is increased by Rs. 324. The cost price of the article is:

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SSC CGL 2023 Tier-I Official Paper (Held On: 14 Jul 2023 Shift 4)
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  1. Rs. 900
  2. Rs. 750
  3. Rs. 1,350
  4. Rs. 60

Answer (Detailed Solution Below)

Option 1 : Rs. 900
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Detailed Solution

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Given: 

The initial loss = 16%

Profit = 20%

The selling price of an article is increased by = Rs. 324

Formula used:

S.P. = [(100 + Profit%)/100] × C.P.

Profit% = [(S.P. - C.P.)/C.P.] × 100

Where, C.P. = Cost price; S.P. = Selling price

Calculation:

Let, the cost price = 100x

So, the selling price = 84x

The final selling price = 100x × (120/100) = 120x

⇒ 120x - 84x = 324

⇒ 36x = 324

⇒ x = 9

⇒ 100x → 9 × 100 = 900

Cost price =  Rs. 900

∴ The Cost price of the article is Rs. 900

Shortcut Trick

Let the CP be 100%

Initial SP = 84%

Final SP = 120%

The gap in the two SPs is due to 324.

⇒ 36% = 324

⇒  1%→ 9 

⇒  100%→ 900

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