By selling an article for ₹19, a dealer makes a profit of 20%. By how much should he increase his selling price (in ₹, rounded off to two decimal place) so as to make a profit of 40%?

Correct option is B

Given:
Selling price (SP1) = ₹19
Profit percentage (P1) = 20%
Desired profit percentage (P2) = 40%
Formula Used:
Selling Price (SP) = Cost Price × (1 + $$\frac{\text{Profit Percentage }}{ 100}$$​)
Solution:
CP = $$\frac{SP1}{1 + \frac{P1}{100}}$$​​
CP = $$\frac{19} { 1 + \frac{20 }{ 100}}$$​​

CP = $$\frac{19 }{ (1 + 0.2)}$$​​
CP = $$\frac{19 }{ 1.2}$$​​
CP = ₹15.83 (approximately)
Calculate the new selling price (SP2) for a 40% profit:
SP2 = CP × (1 +$$\frac{P2}{100}$$​)
SP2 = 15.83 × (1 + 0.4)
SP2 = 15.83 × 1.4
SP2 = ₹22.16 (approximately)
Increase in selling price = SP2 - SP1 = 22.16 - 19 = ₹3.16
The dealer should increase his selling price by ₹3.16.