Multiple choice

A video cassette distributor made 3500 copies of the march issue of the cassette at a cost of Rs. 350000. He gave 500 cassettes free to some key video libraries. He also allowed a 25% discount on the market price of the cassette and gave one extra cassette free with every 29 cassettes bought at a time. In this manner, he was able to sell all the 3500 cassettes that were produced. If the market price of a cassette was Rs. 150, then what is his gain or loss percent for the march issue of video cassettes(in approximate).

  1. 6.8% loss

  2. 6.8% profit

  3. 5.2% loss

  4. 5.2% profit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total cost = 350,000. 500 free cassettes leaves 3000 to be sold. One free with every 29 bought means for every 30 cassettes, 1 is free. Selling 3000 total means 100 sets of 30, so 100 free and 2900 paid. Total revenue = 2900 * 150 * 0.75 = 326,250. Loss = 350,000 - 326,250 = 23,750. Loss % = (23,750 / 350,000) * 100 = 6.78%.

AI explanation

The total cost incurred is Rs. 350000. The distributor gave 500 cassettes free, leaving 3000 effective cassettes. Because one extra cassette is given for every 29 bought, the 3000 cassettes are distributed in 100 batches of 30. The effective selling price per original batch of 29 is 150 multiplied by 0.75 multiplied by 29, which is 3262.5. For 100 such batches, the total revenue is Rs. 326250. Using the loss percentage formula, the loss is (350000 - 326250) divided by 350000, which equals 0.0678 or 6.8 percent. The result is a 6.8 percent loss.

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