Multiple choice

X sent out goods costing Rs. 90,000 to Y at a profit of 25% on invoice price. 1/10th of goods were lost in transit. 2/3rd of the goods received are sold at 20% above IP. The amount of sale value will be:

  1. Rs. 1,08,000

  2. Rs. 86,400

  3. Rs. 1,20,000

  4. Rs. 72,000
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Let the cost of goods be C, so the invoice price (IP) is derived from C = IP - 0.25IP, which gives IP = C / 0.75. For goods costing Rs. 90,000, the total IP is 90,000 / 0.75 = Rs. 1,20,000. After 1/10th of the goods were lost, 9/10th remain, leaving an IP of 1,20,000 * (9/10) = Rs. 1,08,000. The agent sold 2/3rd of the remaining goods at 20% above IP, so the sale value is 1,08,000 * (2/3) * 1.20 = Rs. 86,400. The result is Rs. 86,400.

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