Multiple choice

A merchant fixed the selling price of his articles at Rs. 700 after adding 40% profit to the cost price. As the sale was very low at this price level, he decided to fix the selling price at 10% profit. Find the new selling price.

  1. Rs.450

  2. Rs.490

  3. Rs.500

  4. Rs.550
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Original SP = 700 = 1.4 * CP. CP = 700 / 1.4 = 500. New SP = 1.1 * CP = 1.1 * 500 = 550.

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