The total cost of a heater is Rs. 800. If the manufacturer wishes to have a margin of 20% on the sale price, what should be its selling price?
Let, Sale Price = Rs x
The margin of profit is x – 800 (as the total cost is Rs 800)
Profit margin required 20% of x i.e. 0.2 x. 0.2 x = x - 800 0.8 x = 800 x = 800/0.8 x = Rs 1000.
Thus, the selling price should be Rs 1000.
