On selling an article for Rs. 900, the loss is 25%. To make a profit of 25%, the article must be sold at?

Appeared in: OSSSC Nursing Officer-2023

Explanation

The first step is to determine the cost price (CP) of the article. A sale at Rs. 900 with a 25% loss means Rs. 900 is 75% of the CP.
Calculating the CP: CP = Selling Price / (1 - Loss Percentage) = 900 / 0.75 = Rs. 1200.
The next step is to calculate the new selling price (SP) for a 25% profit based on the calculated CP.
Calculating the new SP: New SP = CP × (1 + Profit Percentage) = 1200 × 1.25 = Rs. 1500.

Option A: This value is obtained by incorrectly applying the 25% profit margin to the initial selling price (900 × 1.25 = 1125) instead of the cost price.
Option B: This is the Cost Price (CP) of the article, not the selling price required for a 25% profit. Selling at this price would result in no profit and no loss.
Option C: This value is an arbitrary distractor and does not correspond to a logical calculation based on the problem's data. It might be chosen by guessing.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Profit and Loss Calculation as background academic context rather than a clinical decision trigger.
This question tests basic mathematical aptitude, a skill required for various non-nursing sections of competitive exams.
While not directly clinical, strong numerical skills are essential for nurses in tasks like medication dosage calculation, IV drip rate monitoring, and interpreting patient data charts.
What if the initial transaction was a 25% profit instead of a loss? The CP would be 900 / 1.25 = Rs. 720. A further 25% profit would mean selling at 720 * 1.25 = Rs. 900, the original price.

How to Approach the Question

First, identify the given information: the initial selling price (SP1 = Rs. 900) and the corresponding loss percentage (25%).
Recognize that the goal is to find a new selling price (SP2) that yields a 25% profit.
Understand that both profit and loss are calculated based on the Cost Price (CP). Therefore, the first step must be to find the CP.
Use the formula SP = CP × (1 - Loss%) to calculate the CP from the initial sale.
Once the CP is known, use the formula SP = CP × (1 + Profit%) to calculate the new selling price required for the desired profit.
Check your final answer against the options provided.

Concept Tested & Keywords

QMYstOjloozjuo13XTwo6P

Practise the full OSSSC Nursing Officer-2023

Attempt every question from this paper in a timed mock, then review the full solution for each one.