1. **State the problem:** Mr. Babar sold an item for 6954 at a loss of 8.5%. We need to find the selling price of the item if he had sold it at a 20% profit instead. 2. **Define variables:** Let the cost price be $C$. 3. **Use the loss information to find $C$:** Since selling at 8.5% loss means selling price = $C - 0.085C = 0.915C$. Given selling price at loss = 6954, so: $$6954 = 0.915C$$ 4. **Solve for $C$:** $$C = \frac{6954}{0.915} = 7600$$ This means the cost price is 7600. 5. **Calculate new selling price at 20% profit:** Selling price at 20% profit is: $$S = C + 0.20C = 1.20C$$ Substitute $C = 7600$: $$S = 1.20 \times 7600 = 9120$$ 6. **Answer:** If Mr. Babar sold the item at 20% profit, the selling price would be 9120.