Multiple choice

X sends out goods costing Rs 80,000 to Y so as to show 20% profit on invoice value. 3/5th of the goods received by consignee is sold at 10% above invoice price. The amount of sale value will be ______________.

  1. Rs 66,000

  2. Rs 60,000

  3. Rs 50,400

  4. Rs 52,800
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cost = 80,000. Invoice value = Cost + 20% of Invoice => I = 80,000 + 0.2I => 0.8I = 80,000 => I = 100,000. 3/5 of goods = 60,000 (invoice value). Sold at 10% above invoice = 60,000 * 1.1 = 66,000.

AI explanation

Let the total invoice value be x, so using the profit on invoice formula, 80,000 equals x minus 0.20x, which means 0.80x is 80,000 and x becomes 1,00,000. The consignee sells 3/5th of the goods, making the invoice price of the sold goods 60,000. Since the goods are sold at 10 percent above the invoice price, the sale value is 60,000 plus 10 percent of 60,000, which equals 66,000.

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