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A shopkeeper sells a commodity with a profit of 30 percent on the cost
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18 Jan 2024, 14:49
The profit percentage formula is (selling price - cost)/cost * 100 = profit percentage
Let s = initial selling price, c = commodity's cost.
Since we're given the initial profit percentage is 30%,
s−cc∗100=30
s−c=0.3c
s=1.3c
The new selling price after the increase = s + 100. Set up the formula again with the new profit percentage of 40%.
(s+100)−cc∗100=40 <- c remains the same, since cost doesn't change
(s+100)−c=0.4c
s+100=1.4c
Plug in s=1.3c for s to solve for c.
1.3c+100=1.4c
100=0.1c
c=1000
s=1.3c=1.3(1000)=1300