By selling an article for ₹19, a dealer makes a profit of 10%. By how much should he increase his selling price (in ₹, rounded off to two decimal place) so as to make a profit of 40%?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 5.18.
Selling Price (SP) = ₹19
Profit = 10%
So,
SP = 110% of CP
⇒ 1.10 × CP = 19
⇒ CP = 19 / 1.10 = ₹17.27
New SP = 140% of CP
⇒ New SP = 1.40 × 17.27 = ₹24.18
Increase = New SP - Old SP = 24.18 - 19 = ₹5.18