Question

A shopkeeper sells an item for \(\textrm{Rs }960\) and gains 20%. The cost price of the item is

• A. Rs 768
• B. Rs 820
• C. Rs 850
• D. Rs 800

Hint:

Selling price is 120% of cost; divide by 1.2 to recover the cost price.

Answer 1

The Correct Option is D

Step 1: Treat 960 as 120%.
The selling price is $120\%$ of cost, so $1\%$ of cost is $\dfrac{960}{120}=8$.
Step 2: Scale to 100%.
Cost price $=8\times100=800$.
\[\boxed{\textrm{Rs }800}\]