Raghu buys an article for Rs. 14,360 and spends an additional Rs. 240 on its transportation. At what selling price should he sell the article in order to earn a profit of 15% on his total cost (including transportation)?

Introduction / Context:
This question tests the calculation of selling price when there are additional expenses over and above the purchase price. Raghu buys an article and also incurs transportation charges. His profit percentage must be calculated on the total cost, which includes both the purchase cost and the transportation cost. Such questions are common in profit and loss topics, particularly to check whether candidates correctly include all cost components in the cost price.

Given Data / Assumptions:

• Purchase price of the article = Rs. 14,360.
• Transportation cost = Rs. 240.
• Desired profit percentage on total cost = 15%.
• We must find the required selling price (SP) to achieve this profit.

Concept / Approach:
The effective cost price includes all expenses incurred to make the article ready for sale. Thus, total cost price = purchase price + transportation charges. Once we know the total cost price, we apply the profit formula: SP = CP * (1 + profit%). For a 15% profit, we multiply the total cost by 1.15 to get the required selling price.

Step-by-Step Solution:
Purchase price of the article = Rs. 14,360. Transportation charges = Rs. 240. Total cost price (CP) = 14,360 + 240. CP = Rs. 14,600. Desired profit percentage = 15%. Selling price SP = CP * (1 + profit percentage / 100). So SP = 14,600 * (1 + 15 / 100) = 14,600 * 1.15. Compute 14,600 * 1.15 = 14,600 + 0.15 * 14,600. 0.15 * 14,600 = 2,190. Therefore, SP = 14,600 + 2,190 = Rs. 16,790.

Verification / Alternative check:
We can verify by computing the actual profit. Profit = SP − CP = 16,790 − 14,600 = Rs. 2,190. Profit percentage = (2,190 / 14,600) * 100. Now 2,190 / 14,600 = 0.15, giving 0.15 * 100 = 15%. This matches the desired profit percentage, confirming that Rs. 16,790 is correct.

Why Other Options Are Wrong:
16,000: The profit here would be only 1,400, which is less than 10% of the cost price.
16,150: This gives a profit of 1,550, which is close but still below 15% when you compute the percentage accurately.
16,500: This corresponds to a profit of 1,900, which is approximately 13% and not 15%.
15,900: This is even closer to the cost price and yields a profit under 10%, far from the required profit rate.

Common Pitfalls:
A very common mistake is to ignore the transportation cost and calculate profit only on the purchase price. Another error is to miscalculate the percentage increase by adding 15 directly to the cost instead of multiplying by 1.15. To avoid these issues, always combine all cost components first and then apply the profit percentage formula accurately.

Final Answer:
Raghu should sell the article for Rs. 16,790 to earn a 15% profit on his total cost.