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