Multiple choice

Gangaram buys 7000 bananas at Rs. 2 each and agrees to pay an additional sum of Rs. 300 for their delivery. He estimated that 10% of the bananas will be spoiled, so he decides a selling price of Rs. 3 each for the remaining. However, during delivery, 20% of the bananas are spoiled. What should be the percent increase in the selling price in order to obtain the same total profit?

  1. 20.5%

  2. 12.5%

  3. 25.6%

  4. 30.3%

  5. 35.4%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Initial cost: 7000 * 2 + 300 = 14300. Expected sales: 7000 * 0.9 * 3 = 18900. Profit = 4600. Actual sales: 7000 * 0.8 = 5600 bananas. To get 4600 profit, revenue must be 14300 + 4600 = 18900. New price = 18900 / 5600 = 3.375. Increase = (3.375 - 3) / 3 = 0.125 or 12.5%.

AI explanation

Gangaram's total cost is (7000 * 2) + 300 = Rs. 14300. Based on an initial 10% spoilage estimate, his expected total profit at a selling price of Rs. 3 for the remaining 6300 bananas is (6300 * 3) - 14300 = Rs. 4600. If 20% spoil, only 5600 bananas are sellable, so to maintain the profit of Rs. 4600, the total revenue must be 14300 + 4600 = Rs. 18900, requiring a new selling price of 18900 / 55600 = Rs. 3.375. The required percent increase in selling price is (3.375 - 3) / 3 * 100 = 12.5%.

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