By selling an article for ₹20, a dealer makes a profit of 10%. By how much should he increase his selling price (in ₹, rounded off to two decimal places) so as to make a profit of 50%?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 7.27.
Cost Price (CP) = 20 ÷ 1.10 = 18.18
To make 50% profit, new SP = 18.18 × 1.50 = 27.27
Increase = 27.27 − 20 = ₹7.27