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Question : A shopkeeper increases the selling price of an article by 15%. After increasing the selling price, he noticed that the profit percentage changed from 5% to 15%. The percentage increase in the cost price is:

Option 1: 20%

Option 2: 10%

Option 3: 15%

Option 4: 5%


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: 5%


Solution : Let the original cost price be 100.
His profit is 5%.
So, the original selling price = 100 + 5 = 105
He increases the selling price of an article by 15%.
So, new selling price = $\frac{100+15}{100}×105=\frac{483}{4}$
His new profit is 15%.
So, new cost price = $\frac{100}{100+15}×\frac{483}{4}=105$
$\therefore$ Increase in cost price = $\frac{105-100}{100}×100=5\%$
Hence, the correct answer is 5%.

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