Question
A merchant sold an article at a loss of 12%. If the cost
price was increased by 20% and the article was sold at a profit of 12%, find the percentage increase in the selling price.Solution
Let the original cost price be ₹100. Selling price with a loss of 12% = 100 - 12% of 100 = ₹88. New cost price = 100 + 20% of 100 = ₹120. Selling price with a profit of 12% = 120 + 12% of 120 = ₹134.4. Percentage increase in selling price = ((134.4 - 88) / 88) × 100 = 52.7%. Correct Option: b
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