Multiple choice

A and B enter into a joint venture for purchase and sale of Type-writer. A purchased Typewriter costing 2,00,000. Repairing expenses 20,000, printing expenses 20,000. B sold it at 20% margin on selling price. The sales value will be ____________.

  1. 2,50,000.

  2. 3,00,000.

  3. 2,00,000.

  4. 2,80,000.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total cost = 2,00,000 + 20,000 + 20,000 = 2,40,000. The margin is 20% on the selling price, which means the cost is 80% of the selling price. Therefore, 0.8 * Selling Price = 2,40,000, so Selling Price = 2,40,000 / 0.8 = 3,00,000.

AI explanation

The total cost incurred for the typewriter is the sum of its purchase price, repairing expenses and printing expenses, which equals 2,00,000 plus 20,000 plus 20,000, totaling Rs 2,40,000. B sold the typewriter at a 20% margin on the selling price, meaning the cost represents 80% of the sales value. Using the formula Sales Value equals Cost divided by (1 minus Margin), the sales value is 2,40,000 divided by 0.80, which is Rs 3,00,000.

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