Question
By selling a TV set for ₹16,800, a salesman gains a
profit of 20%. If the production cost is increased by 20%, find the new selling price of the set so as to gain 20%.Solution
SP =16,800 =CP + 20% of CP =16,800= 1.2 × CP CP = 16800/1.2 = 14,000 New Cost Price after 20% increase New CP = 14000 × 1.2 = 16800 New Selling Price for 20% profit: New SP = 16800 × 1.2 = 20160
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