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A television manufacturer earns 20% profit by selling each T.V. set for Rs 14,400. If the production cost is increased by 15%, what should be the new
Question



A television manufacturer earns 20% profit by selling each T.V. set for Rs 14,400. If the production cost is increased by 15%, what should be the new selling price of a T.V. set so as to gain a profit of 15%?

A.

15,870

B.

13,800

C.

12,000

D.

15,000

Correct option is A

CP = 100/(100+P%)×SP
CP = 100/(100+20)×14400
CP = Rs. 12,000
New CP = 1.15 × 12000 = Rs. 13,800
To gain 15% profit, the new SP must be,
SP = (100+P%)/100 ×CP
SP = (100+15)/100×13800
SP = 1.15 × 13800 = Rs. 15,870

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