Multiple choice

A and B enter into a joint venture for purchase and sale of typewriter. A purchased a typewriter costing Rs. 100000. He incurred repairing expenses of Rs. 10000 and printing expenses of Rs. 10000. B sold it at 20% margin on the selling price. The sales value is

  1. Rs. 125000

  2. Rs. 150000

  3. Rs. 100000

  4. Rs. 140000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The total cost incurred is 100000 + 10000 + 10000 = 120000. The margin is 20% on the selling price, meaning the cost price is 80% of the selling price. Therefore, 0.8 * Selling Price = 120000, which results in a Selling Price of 150000.

AI explanation

A's total cost for the typewriter is the sum of the initial Rs. 100,000 purchase price, the Rs. 10,000 repairing expenses, and the Rs. 10,000 printing expenses, totaling Rs. 120,000. B sold the typewriter at a 20% margin on the selling price, meaning the cost represents the remaining 80% of the sales value. Setting up the equation 0.80 multiplied by the sales value equals 120,000, and dividing by 0.80 gives the sales value of Rs. 150,000.

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