Step 1: Understanding the Concept:
In commercial mathematics, profit is the financial gain realized when the selling price of a commodity exceeds its baseline production or purchase cost price. The profit percentage is always calculated relative to the initial cost price ($CP$), representing how much extra money is earned for every 100 units of the cost.
Step 2: Key Formula or Approach:
We can determine the total Selling Price ($SP$) using the standard percentage-based financial formula:
$$ SP = CP \times \left(1 + \frac{\text{Profit %}}{100}\right) \quad \text{or} \quad SP = CP + \text{Profit Value} $$
Where:
- Cost Price ($CP$) = Rs 800
- Profit Percentage = 20%
Step 3: Detailed Explanation:
Let's calculate the absolute cash profit value earned on the article first:
$$ \text{Profit Value} = 20% \text{ of } CP = \frac{20}{100} \times 800 $$
$$ \text{Profit Value} = 20 \times 8 = 160 \text{ Rs} $$
Now, add this financial gain to the original cost price to figure out the final retail selling price:
$$ SP = CP + \text{Profit Value} $$
$$ SP = 800 + 160 = 960 \text{ Rs} $$
Alternatively, using the multiplier scaling method:
$$ SP = 800 \times \left( \frac{100 + 20}{100} \right) = 800 \times \frac{120}{100} = 8 \times 120 = 960 \text{ Rs} $$
Both approaches yield a total selling price of Rs 960, which corresponds to option (C).
Step 4: Final Answer:
The selling price of the article is Rs 960.