Cost price: The money paid by the shopkeeper to buy the goods from a manufactures or a wholesale is called the cost price of the shopkeeper & it is abbreviated as C.P.
Selling price: The price at which a shopkeeper sells the goods is called the selling price of the shopkeeper, it is abbreviated is S.P.
55. By selling toffees at 20 for a rupee, a man loses 4%. To gain 20%, he must sell
(A) 16 toffees for a rupee
(B) 20 toffees for a rupee
(C) 24 toffees for a rupee
(D) 25 toffees for a rupee
Let's assume the cost price of 1 toffee is x rupees.
Given that the man sells 20 toffees for 1 rupee and incurs a loss of 4%. This means he sells 20 toffees for 96% of their cost price.
Therefore, the selling price of 20 toffees = 1 rupee
Selling price = Cost price x (100% - Loss%)
1 = 20x x 96%
1 = 20x x 0.96
x = 0.05
To gain 20% profit, the selling price of 20 toffees should be equal to the cost price of 20 toffees + 20% profit.
Profit = Cost price x 20%
Profit = 20 x 0.05 x 20% = 4 rupees
Therefore, the selling price for 20 toffees with a 20% profit = Cost price for 20 toffees + Profit
Selling price = 20 x 0.05 + 4 = 5 + 4 = 9 rupees
So, the man should sell 20 toffees for 1 rupee in order to gain 20% profit.
Therefore, the correct answer is option (B) 20 toffees for a rupee.