The cost price of a radio is 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

Options

A. 704.5
B. 724.5
C. 664.5
D. 684.5

Answer

To solve the problem step by step, we will calculate the selling price of the radio based on the given cost price, transportation cost, and desired profit margin.

### Step 1: Calculate the Transportation Cost
The cost price (CP) of the radio is given as 600. The transportation cost is 5% of the cost price.

\[ \text{Transportation Cost} = 5\% \text{ of } 600 = \frac{5}{100} \times 600 = 30 \]

**Hint:** To find a percentage of a number, multiply the number by the percentage (in decimal form).

### Step 2: Calculate the Total Cost Price Including Transportation
Now, we add the transportation cost to the original cost price to find the total cost price (TCP).

\[ \text{Total Cost Price} = \text{Cost Price} + \text{Transportation Cost} = 600 + 30 = 630 \]

**Hint:** When calculating total costs, simply add all individual costs together.

### Step 3: Calculate the Desired Profit
Next, we need to determine the profit amount based on the total cost price. The desired profit is 15% of the total cost price.

\[ \text{Profit} = 15\% \text{ of } 630 = \frac{15}{100} \times 630 = 94.5 \]

**Hint:** Again, to find a percentage, multiply the total cost by the percentage (in decimal form).

### Step 4: Calculate the Selling Price
Finally, we can find the selling price (SP) by adding the profit to the total cost price.

\[ \text{Selling Price} = \text{Total Cost Price} + \text{Profit} = 630 + 94.5 = 724.5 \]

**Hint:** The selling price is calculated by adding the profit to the total cost price.

### Final Answer
The selling price of the radio must be **724.5**.