Question
A shopkeeper makes a profit of 25% by selling an item for
Rs. 500. What should be the selling price to make a profit of 40%?Solution
ATQ,
So, cost price of the item = 500 ÷ 1.25 = Rs. 400
So, selling price of the item when sold at 40% profit = 400 × 1.4 = Rs. 560
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