Multiple choice

The cost price of a radio is 600. The 5% of the cost price is charged towards transportation. After adding that, if the net profit to be made is 15%, then the selling price of the radio must be

  1. 704.50

  2. 724.50

  3. 644.50

  4. 684.50

  5. 0
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total cost = 600 + 5% of 600 = 600 + 30 = 630. Profit = 15% of 630 = 94.5. Selling price = 630 + 94.5 = 724.50.

AI explanation

The transportation charge is 5% of 600, which is 30, making the effective cost price 630. To achieve a 15% profit on this effective cost, the selling price equals 630 plus 15% of 630, which is 630 plus 94.50. Therefore, the selling price must be 724.50.

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