Question
Ajay purchases an item for Rs. 1600 and incurs
additional costs of 20% for maintenance and 30% for transportation. Calculate the selling price he should set to achieve a profit margin of 10% on the total expenditure.Solution
Actual cost price of product = 1600 + 0.20 × 1600 + 0.30 × 1600 = Rs. 2400 Desired selling price = 2400 × 1.10 = Rs. 2640
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