Question
On selling an item for Rs. 900, the profit earned by the
seller is 20% more than the profit earned on selling the same item for Rs. 850. If the seller aims for a 50% profit, at what price should he sell the item?Solution
ATQ, Let the cost price be Rs. 'y'. 1.2 × (850 - y) = 900 - y Or, 1020 - 1.2y = 900 - y Or, 1.2y - y = 1020 - 900 So, y = (120/0.2) = 600 The required selling price = 1.5 × y = 1.5 × 600 = Rs.900
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