Multiple choice

A shopkeeper buys 5 units of product A at ₹500 per unit. Unfortunately, 1 unit is destroyed during transportation. The remaining units are sold at a price that yields an overall profit of 20% on the total cost. What is the selling price per unit?

  1. ₹625

  2. ₹800

  3. ₹750

  4. ₹825

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total cost = 5 * 500 = 2500. Target profit = 20% of 2500 = 500. Total revenue needed = 3000. Units remaining = 4. Selling price per unit = 3000 / 4 = 750.

AI explanation

The shopkeeper's total cost is 5 units multiplied by ₹500 per unit, which equals ₹2500. To achieve an overall profit of 20% on the total cost using the selling price formula, the total selling price must be 1.20 multiplied by ₹2500, resulting in ₹3000. Since there are only 4 units left to sell, the selling price per unit is ₹3000 divided by 4, which equals ₹750.

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