1. A shop owner buys an article for N$125,00 and decides to sell it for N$200. (4)

a. Calculate the amount of the article increase.

b. Calculate the percentage increase.

1 answer

To solve the problem, we have the following:

a. Calculate the amount of the article increase.

The amount of increase can be calculated as follows:

\[ \text{Increase} = \text{Selling Price} - \text{Cost Price} \]

Where:

  • Selling Price = N$200
  • Cost Price = N$125

\[ \text{Increase} = 200 - 125 = N$75 \]

So, the amount of the article increase is N$75.


b. Calculate the percentage increase.

The percentage increase can be calculated using the following formula:

\[ \text{Percentage Increase} = \left(\frac{\text{Increase}}{\text{Cost Price}}\right) \times 100 \]

Using the increase calculated in part (a):

\[ \text{Percentage Increase} = \left(\frac{75}{125}\right) \times 100 \]

Calculating that:

\[ \text{Percentage Increase} = 0.6 \times 100 = 60% \]

So, the percentage increase is 60%.