A shopkeeper increases the selling price of an article by 15 After increasing the selling price he n...........

Quantitative Aptitude (CPO) Profit and loss

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:

This questions was previously asked in

SSC CPO 11th Nov 2022 Shift 2

20%

10%

15%

- Initially, let's assume the cost price (CP) of the article is \( C \).

- The initial selling price (SP) gives a 5% profit. So, the initial SP is \( C + 0.05C = 1.05C \).

- Then, the selling price is increased by 15%. Therefore, the new selling price is \( 1.15 \times 1.05C = 1.2075C \).

- The new profit percentage is 15%. Thus, the new SP gives a profit of 15% over the new cost price, \( C' \).

- So, \( 1.2075C = 1.15C' \).

- Solving for \( C' \), we get \( C' = \frac{1.2075}{1.15} \times C = 1.05C \).

- This means the cost price increased by 5%.

- Option 4: 5% is the correct answer.

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