Question

Tick (✓) the correct answer:
A man buys an article for Rs 150 and makes overhead expenses which are 10% of the cost price. At what price must he sell it to gain 20%?
(a) Rs 182
(b) Rs 192
(c) Rs 198
(d) Rs 208

Answer 1

​(c) Rs 198

$$\begin{gathered} \mathrm{CP}=\mathrm{Rs}150 \\ \mathrm{Total}\mathrm{CP}=\mathrm{Rs}\left(150+10\%\mathrm{of}150\right) \\ =\mathrm{Rs}\left(150+\left(\frac{10}{100}\times 150\right)\right) \\ =\mathrm{Rs}\left(150+15\right) \\ =\mathrm{Rs}165 \\ \therefore \mathrm{Desired}\mathrm{SP}=\left\{\frac{\left(100+\mathrm{gain}\%\right)}{100}\times \mathrm{total}\mathrm{CP}\right\} \end{gathered}$$
$$\begin{gathered} =\mathrm{Rs}.\left\{\frac{\left(100+20\right)}{100}\times 165\right\} \\ =\mathrm{Rs}.\left(\frac{120}{100}\times 165\right) \\ =\mathrm{Rs}.198 \end{gathered}$$