Define the relationship between SP, CP, and Loss

Let the cost price of the pan be $CP$. According to the problem, the shopkeeper loses $\frac{1}{11}$ of its cost price.

$\text{Loss} = \frac{1}{11} \times \text{CP}$

Apply Selling Price formula

We know that Selling Price is given by $SP = CP - \text{Loss}$. Substituting the value of Loss:

$\text{SP} = \text{CP} - \frac{1}{11}\text{CP} = \frac{10}{11}\text{CP}$

Substitute SP and solve for CP

Given that $SP = \text{₹}10$, we set up the equation $\frac{10}{11} \times \text{CP} = 10$. Multiplying both sides by $\frac{11}{10}$ gives:

$\text{CP} = 10 \times \frac{11}{10} = 11$