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Let the Cost price be CP.
Loss = CP * 12.5% 
Selling Price with loss = SP  =  CP - loss = CP - CP * 12.5%
              = CP * (100-12.5)/100 
        Rs 420 = CP * 87.5/100
           CP = Rs 42, 000/87.5 = Rs 480
      Profit expected = 12.5% 
        Selling price = C P + profit = CP + CP * 12.5 /100 = CP * 112.5/100
                    SP = Rs 480 * 112.5/100 = Rs 540

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k sir i have 1 doubt i did this problem in another way i got the ans but litttle bit confusion is there pls clarify my doubt sir...
sir i'll send my qn
Sp=420 loss =12.5% we can write it as 1/8 loss means 1-1/8 =7/8 then cp= sp*100/loss% cp=420* 8/7 =480 i got cp by doing like this but here i have one doubt instead of putting loss 7/8 i put 8/7 and multiply with 420 then only i'm getting ans.... profit=1+1/8 = 9/8 sp= cp* profit%/100 here in fractions sp= 480* 9/8 =540 here i didn't reverse 9/8 i put it as it is for Cp i had to reverse the fraction for sp i hadn't is there any logic sir?
since u r confusing urself easily, it is best u work without short cuts. calculate profit amount or loss amount separately and then add to cost price to get sale price.. it is more important to solve the problem without mistakes or confusion
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