Question

A handbag was bought by Rahul for Rs. 1650. He sold it to Sushant at a profit% of 40%. Sushant sold the bag for Rs. 2600 to Raghav. At what price should Raghav sell to gain a profit of 10%? 
1. 2860 
2. 2600
3. 2770
4. 2810

Answer 1

Correct Answer - Option 1 : 2860 

Given:

A handbag was bought by Rahul for Rs. 1650.

He sold t to Sushant at a profit% of 40%.

Sushant sold the bag for Rs. 2600 to Raghav.

Formula Used:

Profit or Gain = Selling price – Cost Price

Loss = Cost Price – Selling Price

Profit percentage = (Profit/Cost Price) x 100

Loss percentage = (Loss/Cost price) x 100

Calculation:

Cost price of handbag for Rahul = Rs. 1650

Cost price of handbag for Sushant = Rs. (1650 × 140%) = Rs. 2310

Now, cost price of the bag for Raghav = Rs. 2600

To gain a profit of 10%, Raghav should sell the handbag at Rs. (2600 × 110/1000 = Rs. 2860

∴ Raghav should sell the bag at Rs. 2860.