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 20%?Solution
Given: Selling Price (SP₁) = ₹20 Profit % = 10% Let Cost Price (CP) = x From profit formula: SP₁ = x + 10% of x = 1.10x → 1.10x = 20 ⇒ x = 20 ÷ 1.10 = ₹18.18 Now for 20% profit: SP₂ = 1.20 × CP = 1.20 × 18.18 = ₹21.82 Increase in SP = 21.82 − 20 = ₹1.82
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