A shopkeeper increases the selling price of an article by 15%. After increasing the selling price, he noticed that the profit percentage changed from 5% to 15%. The percentage increase in the cost price is:
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Correct answer: D
Explanation
The correct answer is option 4 i.e. 5%.
Profit percentage = 5% = 1/20
So, CP1 = 20, SP1 = 21
After 15% increase the new SP2 = 21 × 115/100
New profit % = 15%
So, New CP2 = 21 × 115/100 × 100/115 = 21
Percentage change in CP = (21 - 20)/20 × 100 = 5%