By selling a CPU for Rs. 6325, a man makes a profit of 15%. At what price should he sell it to make a profit of 25%?

Appeared in: RRB Nsg. Superintendent-20 July 2019 (Shift-1)

Explanation

The first step is to determine the original cost price (CP) of the CPU using the initial selling price (SP) and profit percentage.
The formula used is CP = SP / (1 + Profit Percentage).
Calculation: CP = 6325 / (1 + 0.15) = 6325 / 1.15 = Rs. 5500.
The second step is to calculate the new selling price required to achieve a 25% profit on the calculated cost price.
The formula is New SP = CP * (1 + New Profit Percentage).
Calculation: New SP = 5500 * (1 + 0.25) = 5500 * 1.25 = Rs. 6875.

Option B: This value is incorrect and likely results from an arithmetic error during the calculation, possibly in the division to find the cost price or the final multiplication.
Option C: This is another incorrect value that probably arises from a miscalculation. For instance, one might incorrectly add the profit margins or apply them to the wrong base amount.
Option D: This value could be the result of a calculation error, such as incorrectly converting percentages to decimals or a simple multiplication mistake.

Visual 1: Flowchart - A flowchart showing the two-step process: 1. Calculate Cost Price from SP1 and Profit1. 2. Calculate SP2 from Cost Price and Profit2.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Calculating a new selling price based on a desired profit percentage as background academic context rather than a clinical decision trigger.
Understanding profit and loss is a fundamental skill in quantitative aptitude tests, which are part of many competitive exams.
This problem tests the ability to work backwards to find a base value (Cost Price) and then use it for a new calculation, a common pattern in multi-step problems.
What if the man made a loss of 15% initially? The cost price would be higher (6325 / 0.85 ≈ 7441), and the new selling price for a 25% profit would be significantly higher (7441 * 1.25 ≈ 9301).

How to Approach the Question

Identify the given information: Initial Selling Price (SP1 = 6325) and Initial Profit (P1 = 15%).
Recognize the goal: Find the new Selling Price (SP2) for a new Profit (P2 = 25%).
Understand that the Cost Price (CP) is the constant link between the two transactions. The first step must be to calculate the CP.
Use the formula CP = SP / (1 + Profit Percentage) to find the cost price.
Once the CP is found, use the formula SP = CP * (1 + Profit Percentage) to calculate the new selling price with the desired 25% profit.
Perform the calculations carefully to arrive at the final answer and match it with the options.

Concept Tested & Keywords

Concept Tested: Calculating a new selling price based on a desired profit percentage.
Stem keywords: selling a CPU, Rs. 6325, profit of 15%
Lead-in keywords: At what price

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Practise the full RRB Nsg. Superintendent-20 July 2019 (Shift-1)

Attempt every question from this paper in a timed mock, then review the full solution for each one.