Question : The cost price of a radio is Rs. 600. The 5% of the cost price is charged towards transportation. After adding that, if the net profit to be made is 15%, then the selling price of the radio must be:
Option 1: Rs. 704.50
Option 2: Rs. 724.50
Option 3: Rs. 664.50
Option 4: Rs. 684.50
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Correct Answer: Rs. 724.50
Solution : Given: The cost price of a radio is Rs. 600. 5% of the cost price is charged for transport. So, charge on the cost price = $\frac{5}{100}$ × 600 = 30 ∴ Total cost price = 600 + 30 = Rs. 630 To gain 15%, the selling price should be: = 630 + ($\frac{15}{100}$ × 630) = Rs. 724.50 Hence, the correct answer is Rs. 724.50.
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