Join 60,000+ competitive exam aspirants
or with email
Your Cart
Subtotal₹0
Total₹0
Examoogle • User • info@examoogle.com • EE-2024-8821
Chapter 1 of 12 • Page 1 of 248🔒 Protected PDF • Watermarked
Join 60,000+ competitive exam aspirants
By selling an article for ₹19.50, a dealer makes a profit of 30%. By how much should he increase his selling price so as to make a profit of 40%?
₹3
₹1.75
₹2
₹1.50
₹1.50
Calculate CP first: CP=19.50/1.3=15. Then calculate new SP: 15×1.4=21. Finally, increment = 21−19.50=1.50.
Selling price SP1 = ₹19.50 at a profit of 30%. Target profit = 40%.
CostPrice(CP)=1+Profit%SP, New SP=CP×(1+New Profit%)
Calculate CP first: CP=19.50/1.3=15. Then calculate new SP: 15×1.4=21. Finally, increment = 21−19.50=1.50.
Students often calculate 10% of the original selling price (1.95) instead of 10% of the Cost Price, or fail to find the base Cost Price.
Calculate Cost Price
Since the profit is 30%, the selling price of ₹19.50 represents 130% of the cost price. CP=1.319.50=15
CP=15
Calculate Target Selling Price
To earn a 40% profit on the cost price of ₹15, the new selling price must be 140% of the CP. SPnew=15×1.40=21
SPnew=21
Find the Price Increase
Subtract the original selling price from the required selling price to find the necessary increase. Increase=21.00−19.50=1.50
Increase=1.50
D is correct because the dealer must increase the selling price by ₹1.50 to move from a 30% profit margin to a 40% profit margin.
This logic is identical to calculating simple interest or tax increments; always reduce the problem to the base value (Cost Price) before adjusting percentages.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download • 100K+ Aspirants