Initial Loss% = $\dfrac{CP - 400}{CP} \times 100$

If the SP is reduced from 400 to 380, Loss% = $\dfrac{CP - 380}{CP} \times 100$

It is given that If the SP is reduced from 400 to 380, Loss% increases by 2

$\Rightarrow \dfrac{CP - 380}{CP} \times 100 - \dfrac{CP - 400}{CP} \times 100$ = 2

$\Rightarrow \left(CP - 380\right) - \left(CP - 400\right) $= $\dfrac{2 \times CP}{100}$

$\Rightarrow 20 = \dfrac{2 \times CP}{100}$

$\Rightarrow CP = \dfrac{20 \times 100}{2}$ = 1000