Question
A shopkeeper raises the price of
a watch by 20%, followed by another increase of 30%. After offering a 25% discount, he makes a profit of ₹68. What should be the selling price of the watch if the shopkeeper wants to achieve a profit margin of 40%?Solution
ATQ,
Let the cost price of the watch be Rs. '100x' ATQ; 100x × 1.2 ×1.3 × 0.75 = 100x + 68 Or, 117x = 100x + 68 Or, 17x = 68 So, x = 4 So, cost price of the watch = 4 ×100 = Rs. 400 So, selling price of the watch when sold at 40% profit = 400 × 1.4 = Rs. 560
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