Question
A merchant initially raised the price of a product by
25% and subsequently by an additional 20%. After providing a 24% discount on the final price, he gains a profit of Rs. 56. If the merchant aims to achieve a profit of 50%, what would be the adjusted selling price of the product?Solution
Let the cost price of the article be Rs. '100x' ATQ; 100x X 1.25 X 1.2 X 0.76 = 100x + 56 Or, 114x = 100x + 56 Or, 14x = 56 So, x = 4 So, cost price of the article = 4 X 100 = Rs. 400 So, selling price of the article when sold at 50% profit = 400 X 1.5 = Rs. 600
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