Multiple choice

A merchant earns a profit of 20% by selling a basket containing 80 apples, which cost Rs. 240. But, he gives one-fourth of it to his friend at cost price and sells the remaining apples. In order to earn the same profit, at what price must he sell each apple?

  1. Rs. 3.00

  2. Rs. 3.60

  3. Rs. 3.80

  4. Rs. 4.80
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost = 240. Profit = 20% of 240 = 48. Total revenue needed = 288. He gives 1/4 of 80 apples (20 apples) at cost (240/80 = 3 per apple). Revenue from friend = 20 * 3 = 60. Remaining apples = 60. Revenue needed from remaining = 288 - 60 = 228. Price per remaining apple = 228 / 60 = 3.80.

AI explanation

The total cost price is Rs. 240 and the total desired revenue for a 20% profit is 240 multiplied by 1.20, which equals Rs. 288. The merchant gives 20 apples to his friend at cost price, generating 20 multiplied by 3, or Rs. 60. To reach the total revenue, he must sell the remaining 60 apples for 288 minus 60, which is Rs. 228, making the required selling price per remaining apple Rs. 3.80.

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