Question

By selling an article for ₹19, a dealer makes a profit of 20%. By how much should he increase his selling price (in ₹, rounded off to two decimal place) so as to make a profit of 40%?

• A. 2.50
• B. 3.17
• C. 3.00
• D. 2.85

Answer 1

Answer:

B. 3.17

Selling price at 20% profit = ₹19

Step 1: Find the cost price

$\text{CP} = \frac{19 \times 100}{120} = \frac{95}{6} \approx 15.83$

Step 2: Selling price for 40% profit

$\text{New SP} = 15.83 \times 1.40 = 22.166\ldots$

Step 3: Increase in selling price

$22.17 - 19 = 3.17$