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By selling cakes at ₹84 per dozen, a baker earns a profit of 12%. At what price must he sell each cake to earn a profit of 20%?
Question

By selling cakes at ₹84 per dozen, a baker earns a profit of 12%. At what price must he sell each cake to earn a profit of 20%?

A.

₹8.50

B.

₹7.50

C.

₹9.50

D.

₹10.50

Correct option is B

Given:
Selling price for 12 cakes (1 dozen) = ₹84
Profit earned = 12%
Formula Used:
Cost Price (CP)=Selling Price×100100+Profit%New Selling Price=Cost Price×(100+New Profit%)100\text{Cost Price (CP)} = \frac{\text{Selling Price} \times 100}{100 + \text{Profit\%}}\\\text{New Selling Price} = \frac{\text{Cost Price} \times (100 + \text{New Profit\%})}{100}​​
Solution:
Cost Price of 12 cakes = 84×100112=75.00₹84 × \frac{100 }{ 112} = ₹75.00​​
Selling Price for 20% profit = 75.00×120100=90.00₹75.00 × \frac{120}{100} = ₹90.00​​
Price per cake = 90.0012\frac{₹90.00}{ 12}​ = ₹7.50
To earn a profit of 20%, he must sell each cake at ₹7.50.

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