Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Profit and Loss

Question:

Anu fixes the selling price of an article at 25% above its cost of production. If the cost of production goes up by 20% and she raises the selling price by 10%, then her percentage profit is (correct to one decimal place):

Options:

16.4%

14.6%

13.8%

15.2%

Correct Answer:

14.6%

Explanation:

Let cost price = 100

Selling price = 100 × \(\frac{5}{4}\) = Rs. 125

Profit = 125 – 100 = Rs. 25

New cost price = 100 × \(\frac{120}{100}\) = Rs. 120

New selling price = 125 × \(\frac{110}{100}\) = Rs. 137.5

New profit = 137.5 – 120 = 17.5

∴ Profit percentage = \(\frac{17.5}{129}\) × 100 = 14.6%