A book is sold at a loss of $10\%$. If it had been sold for Rs $108$ more, the seller would have gained $10\%$. The cost price is:

Question

A book is sold at a loss of $10\%$. If it had been sold for Rs $108$ more, the seller would have gained $10\%$. The cost price is:

Option A

Rs 480

Option B

Rs 500

Option C — Correct answer

Rs 540

Correct choice.

Option D

Rs 600

Explanation

The jump from $10\%$ loss to $10\%$ gain is a total difference of $20\%$ of CP. So $20\%$ of CP $=108$, giving CP $=540$.

Chapter Mock 4: Profit and Loss