Multiple choice

A manufacturer makes 750 articles at a cost of 60 paise per article. He fixes the selling prices such that if only 600 articles are sold he would make a profit of 40% on his outlay. Find his actual profit or loss per cent, if he could sell 560 articles.

  1. Profit = $\displaystyle 30\frac{2}{3}\%$
  2. Profit = $\displaystyle 3\frac{2}{3}\%$
  3. Profit = $\displaystyle 30\frac{1}{3}\%$
  4. Profit = $\displaystyle 20\frac{2}{3}\%$
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A Correct answer
Explanation

Total cost is 750 * 0.60 = 450. Selling 600 articles at a 40% profit on outlay means total revenue = 450 * 1.4 = 630. Selling price per article = 630 / 600 = 1.05. Selling 560 articles yields 560 * 1.05 = 588. Profit = 588 - 450 = 138. Profit percentage = (138 / 450) * 100 = 30.66%, which is 30 2/3%.

AI explanation

The total cost for 750 articles at 60 paise each is Rs. 450. To make a 40 percent profit by selling only 600 articles, the total required revenue is 450 times 1.40, equaling Rs. 630, making the selling price 630 divided by 600, which is Rs. 1.05 per article. Selling 560 articles at this price gives 560 times 1.05, equaling Rs. 588; the profit is 588 minus 450, equaling Rs. 138, so the profit percent is 138 divided by 450 times 100, which is 30 and two-thirds percent.

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