Explanation:

Here is how to solve it:

- Let the cost price (CP) be Rs. 100.

- Marked Price (M.R.P) = 100 + 60% of 100 = Rs. 160.

- M.R.P. in the problem = Rs. 480, so 160 corresponds to 480.

- 1 unit ? Rs. 3

- So, actual cost price = 100 × 3 = Rs. 300

- M.R.P = 160 × 3 = Rs. 480 (matches the question)

- Suppose normal selling price = S.

- Profit = S - 300

- If selling price increased by 25%: New SP = S × 1.25

- New profit = (S × 1.25) - 300

- Given: This new profit = 2 × earlier profit

- (1.25S - 300) = 2(S - 300)

- 1.25S - 300 = 2S - 600

- 2S - 1.25S = 600 - 300 ? 0.75S = 300 ? S = 400

Options:

- Rs. 450

- Rs. 600

- Rs. 500

- Rs. 550

- Rs. 400

Correct Answer: Rs. 400