Multiple choice

Study the table carefully to answer the following questions. Name of goods Cost of production per kg Cost of transportation Cost of packaging Selling price per kg Profit/Loss %age of profit/ loss Ghee Rs. 80 Rs. 8 Rs. 120 Rice Rs. 40 0 0 5% profit Sugar Rs. 45 Rs. 5 Rs. 50 Milk Rs. 20 Rs. 3 Rs. 1 Pulse Rs. 70 Rs. 10 Rs. 90 6% loss If the percentage of profit on sold Ghee is 10%, then what is its cost of packaging?

  1. 21.09

  2. 22.45

  3. 23.69

  4. 24.88
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A Correct answer
Explanation

Total cost = 80 + 8 + Packaging = 88 + P. Selling Price = 120. Profit = 10% of (88+P). 120 = 1.1 * (88+P). 120/1.1 = 88+P. 109.09 = 88+P. P = 21.09.

AI explanation

Using the selling price formula based on a profit percentage, Selling Price equals Total Cost Price multiplied by 1.10. For Ghee, the total cost price is the sum of the cost of production, transportation, and packaging, which is 80 + 8 + packaging. The given selling price is 120, so the equation is 120 = (88 + packaging) multiplied by 1.10. Dividing 120 by 1.10 gives 109.09, which equals 88 plus the packaging cost. Subtracting 88 from 109.09 results in a packaging cost of approximately 21.09.

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