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 50%?

• A. 9.27
• B. 7.27
• C. 8.27
• D. 10.27

Answer 1

Answer:

B. 7.27

Given:

• Selling Price (SP) = ₹20

• Profit = 10%

  Find Cost Price (CP)

$SP = 110\% \text{ of CP}$
20 = 1.1 , CP
$CP = \frac{20}{1.1} = 18.18\overline{18}$

New SP for 50% profit

$SP' = 150\% \text{ of CP} = 1.5 \times 18.18\overline{18}$
$SP' = 27.27$

Increase in selling price

$27.27 - 20 = 7.27$

Final Answer: ₹7.27