Question

A TV of cost price Rs. 16,000 is marked up by 40%. The shopkeeper sold the TV at 20% discount. By how much he should increase the selling price to get the profit of 30%?

1. Rs. 3,880
2. Rs. 4,880
3. Rs. 2,880
4. Rs. 1,880
5. None of these

Answer 1

Correct Answer - Option 3 : Rs. 2,880

Given:

Cost price  of TV = Rs. 16,000

Markup percentage = 40%

Discount percentage = 20%

New profit percentage = 30%

Formula used:

(i) M% = {(MP – CP)/CP} × 100

where,

M% = Markup percentage

MP = Marked price

CP = Cost price

(ii) P% = {(SP – CP)/CP} × 100

where,

P% = Profit percentage

SP = Selling price

(iii) D% = {(MP – SP)/MP} × 100

where,

D% = Discount percentage

Calculations:

M% = {(MP – CP)/CP} × 100

40 = {(MP – 16,000)/16,000} × 100

⇒ (40 × 16,000)/100 = MP – 16,000

⇒ 6400 = MP – 16,000

⇒ MP = 22,400

D% = {(MP – SP)/MP} × 100

⇒ 20 = {(22,400 – SP)/22,400} × 100

⇒ (20 × 22,400)/100 = 22,400 – SP

⇒ 4480 = 22,400 – SP

⇒ Original SP =  Rs. 17,920

P% = {(SP – CP)/CP} × 100

⇒ 30 = {(SP – 16,000)/16,000} × 100

⇒ (30 × 16,000)/100 = SP – 16,000

⇒ 4800 = SP – 16,000

⇒ New SP = Rs. 20,800

Increase in selling price = 20,800 – 17,920

⇒ Rs. 2,880

∴ He should increase the selling price by Rs. 2,880 to get the profit of 30%