Multiple choice

In a local shop, as part of promotional measures, the shop owner sells 3 different varieties of soap, one at a loss of 13 percent, another at a profit of 23 percent and the third one at a loss of 26 percent. Assuming that the shop owner sells all 3 varieties of soap at the same price, the approximate percentage by which average cost price is lower or higher than the selling price is

  1. 10.5 higher

  2. 12.5 lower

  3. 14.5 lower

  4. 8.5 higher
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let SP = 100 for each. CP1 = 100/0.87 = 114.94. CP2 = 100/1.23 = 81.30. CP3 = 100/0.74 = 135.14. Average CP = (114.94 + 81.30 + 135.14) / 3 = 110.46. Average CP is 10.46 percent higher than SP.

AI explanation

Assume the common selling price of each soap is 100, making the total selling price 300. Using the formula Cost Price equals Selling Price times 100 divided by (100 plus or minus profit or loss percentage), the cost prices are approximately 114.94, 81.30, and 135.13. The average cost price is (114.94 plus 81.30 plus 135.13) divided by 3, which equals 110.45. Comparing this average cost price to the selling price of 100, the selling price is lower by ((110.45 - 100) / 100) times 100, which means the average cost price is approximately 10.5 percent higher than the selling price.

Keep practicing — related questions