Multiple choice

A shopkeeper buys 40 bicycles and marks them at 25% above the cost price. He allows a discount of 10% on the marked price for cash sales, and 5% for credit sales. If one – fourth of the stock is sold for credit and the rest for cash, and if the total profit be Rs.37125, what is the cost price of a bicycle?

  1. Rs.7000

  2. Rs.6500

  3. Rs.6200

  4. Rs.6600
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP be x. Cash sales (30 bikes): SP = 1.25x x 0.9 = 1.125x, profit = 0.125x each. Credit sales (10 bikes): SP = 1.25x x 0.95 = 1.1875x, profit = 0.1875x each. Total profit = 30(0.125x) + 10(0.1875x) = 5.625x = 37125, so x = 6600.

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