A shopkeeper sells an item for Rs. 240 at a profit of 20 per cent. What was the cost price?

  • A. Rs. 192
  • B. Rs. 200
  • C. Rs. 220
  • D. Rs. 288

Explanation

The selling price is 120 per cent of the cost, so the cost is 240 multiplied by 100 and divided by 120, giving Rs. 200. Taking 20 per cent off the selling price gives Rs. 192, which is the standard trap because percentages are calculated on the cost, not the sale. Checking, 20 per cent of 200 is 40, and 200 plus 40 is 240.

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