A shopkeeper sold an item for ₹495 with 10% profit. In order to earn 16% profit, by how much (in ₹) should he increase the selling price?
- A27
- B32
- C30
- D25
Solution & Step-by-step Explanation
Given initial selling price (SP
1
) = ₹495 at a profit of 10%.
Let the cost price be CP.
SP
1
=110% of CP⟹495=1.1×CP
CP=
1.1
495
=450
To earn a 16% profit, the new selling price (SP
2
) must be:
SP
2
=116% of CP=
100
116
×450=1.16×450=522
The increase in selling price required is:
Increase=SP
2
−SP
1
=522−495=27
1
) = ₹495 at a profit of 10%.
Let the cost price be CP.
SP
1
=110% of CP⟹495=1.1×CP
CP=
1.1
495
=450
To earn a 16% profit, the new selling price (SP
2
) must be:
SP
2
=116% of CP=
100
116
×450=1.16×450=522
The increase in selling price required is:
Increase=SP
2
−SP
1
=522−495=27