Question

By selling an article for ₹20, 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 40%?

• A. 5.45
• B. 8.45
• C. 6.45
• D. 7.45

Answer 1

Answer:

A. 5.45

Find Cost Price (CP)

Given:
Selling Price (SP) = ₹20
Profit = 10%

$\text{CP} = \frac{SP \times 100}{100 + \text{profit \%}} = \frac{20 \times 100}{110} = 18.18$

Find new SP for 40% profit

$\text{New SP} = \frac{CP \times (100 + 40)}{100}$
$= \frac{18.18 \times 140}{100} = 25.45$

Increase in SP

$\text{Increase} = 25.45 - 20 = 5.45$

= ₹5.45