Selling an article at a 12% profit yields Rs. 6 more than selling it at a 12% loss. What is the cost price:
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Answer: B. Rs. 25
Explanation
The difference between a 12 percent profit and a 12 percent loss equals 24 percent of cost price. The monetary difference between the two selling prices is given as 6 rupees. Dividing 6 rupees by 0.24 gives a cost price of 25 rupees. Profit selling price equals cost price plus 12 percent of cost price. Loss selling price equals cost price minus 12 percent of cost price. Subtracting both selling price equations eliminates the cost price base difference.
Pricing sensitivity analysis examines how margin changes affect absolute revenue outcomes. Retailers use profit and loss comparisons to determine optimal discount thresholds. Commercial arithmetic relies on percentage difference equations for cost evaluation. Choosing 30 rupees overestimates the cost price required to produce a 6 rupee difference. Choosing 24 rupees results from calculating 24 percent incorrectly from the difference. Choosing 20 rupees underestimates the cost price needed for the percentage spread.
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- Mathematics
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- Mathematics
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- Difficulty
- medium
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