A used two-wheeler dealer sells a scooter for ₹460 and makes some loss. If he had sold it for ₹580, his profit would have been double of his loss. What was the cost price of the scooter?

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  1. ₹480
  2. ₹500
  3. ₹520
  4. ₹540

Answer (Detailed Solution Below)

Option 2 : ₹500
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Detailed Solution

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Given:

Selling price at loss (SP1) = ₹460

Selling price at profit (SP2) = ₹580

Profit = 2 × Loss

Formula used:

Loss = Cost Price (CP) - SP1

Profit = SP2 - CP

Profit = 2 × Loss

Calculation:

Let CP = x

Loss = x - 460

Profit = 580 - x

⇒ 580 - x = 2 × (x - 460)

⇒ 580 - x = 2x - 920

⇒ 580 + 920 = 3x

⇒ 1500 = 3x

⇒ x = 500

∴ The correct answer is option (2).

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