The problem involves three selling prices:
- Rs. 1060 gives a profit
- Rs. 950 gives a loss
- Unknown price should give exactly 20% profit (to be found)
The profit from selling at Rs. 1060 is 20% more than the loss from selling at Rs. 950.
Let Cost Price =CP
When selling at Rs. 1060:
Profit =1060−CP
When selling at Rs. 950:
Loss =CP−950
The profit is 20% more than the loss:
Profit =1.2× Loss
1060−CP=1.2×(CP−950)
1060−CP=1.2CP−1140
1060+1140=1.2CP+CP
2200=2.2CP
CP=2.22200
CP=1000
For 20% profit:
Profit =20% of CP
Profit =10020×1000
Profit =200
Selling Price =CP+Profit
Selling Price =1000+200
Selling Price =1200
The answer is Option 3: Rs. 1200