Multiple choice

Directions: In this question, you have to decide which of the statements I, II and III is/are required for determining the answer to the given question. What is the cost price if the product is sold at a profit of 30%? I. The difference between the cost price and the selling price is Rs. 60. II. The ratio of the selling price to the cost price is 13 : 10. III. The selling price is 30% more than the cost price.

  1. Only I

  2. Only I and II

  3. Only II and III

  4. Only II and either I or III

  5. All are insufficient.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

To find the actual cost price, we need at least one absolute monetary value. Statement I provides the absolute difference between the selling price and cost price (which is the profit of Rs. 60), allowing us to calculate the cost price as 60 / 0.30 = Rs. 200. Statements II and III only provide ratios or percentages that are already implied by the question.

AI explanation

The problem asks for the cost price given a 30% profit, and since profit is 30% of the cost price, selling price equals 1.3 times the cost price. Statement I provides the difference between the cost price and the selling price as Rs. 60, which equals the 30% profit itself; therefore, 30% of the cost price is 60, and the cost price is 60 / 0.3 = 200. Statement II gives a ratio that implies a 30% profit but provides no actual values, and statement III merely restates the given percentage, so only statement I is required.

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