By selling a TV set for₹26,000, a seller earns 30% profit. If the production cost is increased by 10%, what should be the new selling price of a set so as to gain 15% profit?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e ₹25,300.
Selling price = ₹26,000
Profit = 30%
So, cost price = 26000 ÷ 1.30 = ₹20,000
New cost price = 20000 + 10% of 20000 = 20000 × 1.10 = ₹22,000
New selling price = 22000 × 1.15 = ₹25,300