Question

By selling an article for ₹19.5, a dealer makes a profit of 10%. By how much should he increase his selling price (in ₹,rounded off to two decimal place) so as to make a profit of 50%?

• A. 10.09
• B. 7.09
• C. 8.09
• D. 9.09

Answer 1

Answer:

B. 7.09

Given:
Selling price (SP₁) = ₹19.5 with 10% profit

Find cost price (CP)

$SP_1 = 1.10 \times CP$
$CP = \frac{19.5}{1.10} = 17.7273$

Find new selling price for 50% profit

$SP_2 = 1.50 \times CP = 1.5 \times 17.7273 = 26.5909$
Increase in selling price

$26.5909 - 19.5 = 7.0909$

Final Answer: ₹7.09