Question

    A shopkeeper sold an item at a 20% profit. If he had

    purchased it for Rs. 400 less and sold it for Rs. 240 more, his profit margin would have increased to 40%. Determine the selling price of the item when it is sold at a 28% profit based on its original cost price.
    A Rs. 5040 Correct Answer Incorrect Answer
    B Rs. 5360 Correct Answer Incorrect Answer
    C Rs. 4800 Correct Answer Incorrect Answer
    D Rs. 4920 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the cost price of article be Rs. 100a

    Selling price of article = 1.2 X 100a = Rs. 120a

    So, 120a + 240 = 1.4 X (100a - 400)

    Or, 120a + 240 = 140a - 560

    Or, 20a = 800

    Or, a = 40

    Therefore, required selling price = 1.28 X 100a = 128a = 128 X 40 = Rs. 5,120

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