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Here is the problem,

on selling an article for $76$ dollars merchant loses $4$ dollars, to gain $20$% profit he has to sell it for X dollars.The selling price of the article to gain $20$% is...?

I found it as $96$ but the answer says it as more than $96$,,am I correct ..?

Ganesh Vellanki
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2 Answers2

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If the item is worth $x$, then $76-x=-4\implies x=80$. A $20\%$ profit is then $80\cdot\frac{2}{10}=16$. So the selling price is $80+16=96$. So it seems you are correct.

Joel Bosveld
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Maybe the selling price based on the trade margin has to be calculated. The formula is

$\text{margin(%)}=\frac{\text{selling price - cost}}{\text{selling price}}=\frac{\text{x - 80}}{x}=0.2$

callculus42
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  • @VellankiGaneshBabu Have you seen, that the result of this equation is not $96 ? – callculus42 Aug 18 '14 at 05:59
  • yes it is 95 if 4% loss (not 4$), I mean I have calculated it. – Ganesh Vellanki Aug 18 '14 at 06:07
  • @VellankiGaneshBabu Did you used the formula, which I have posted ? The calculation and the result is different from yours and Joel Bosvelds. What have you calculated ? – callculus42 Aug 18 '14 at 06:29
  • I have used your formula for the calculation of profit margins(subsequent formulas), I meant nice timing in Bad context though... – Ganesh Vellanki Aug 18 '14 at 09:34
  • @VellankiGaneshBabu But I have in both cases (4%,$4) different results. That is why I asked for a calculation. – callculus42 Aug 18 '14 at 09:55
  • for this..question, I have got 96 for 4 and 95 for 4%...and I have not used your formula for computing this question but for other question in book so your formula and the link gave me a way, to know about profit margin concept.. – Ganesh Vellanki Aug 18 '14 at 10:01
  • @VellankiGaneshBabu OK. I only wondered, because you have written, that the given answer is more than 96. – callculus42 Aug 18 '14 at 10:20