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2014-11-14T21:19:32+05:30

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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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