Question

When a pack of noodle is sold for Rs 23, there is profit of 15%.

(i) What is the cost price?
(ii) At what price must it be sold to make a profit of 10% ?

Answer 1

(i) The cost price price is Rs 20

(ii) To make a profit of 10%, it must be sold for Rs 22

Explanation:

Sales price of pack of noodle = Rs 23

Profit margin = 15%

As we know the profit margin is 15%, the sale price of Rs 23 is 115% of cost price (100 % cost + 15% profit)

(i) So cost price = 23 / 115% = Rs 20

(ii) 10% profit of a cost of Rs 20

20 * 10% = Rs 2

So the noodle must be sold for Rs 22 ( Rs 20 + Rs 2) to make a profit of 10%