Multiple choice

A vendor buys 70 kg of premium rice and sets a marked price to gain 20% profit. He sells 10 kg at this price, and 30 kg at a 10% discount. Accidentally, 6 kg of rice is spoiled. He sells the remaining rice by increasing the marked price by p per cent, in order to make an overall profit of 15% on the entire 70 kg stock. Then p is nearest to:

  1. 17%

  2. 21%

  3. 25%

  4. 37%

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

Let the cost price per kilogram be 1, so the marked price is 1.2. The first 40 kg earns 12 + 32.4 = 44.4, and the remaining 24 kg must produce 80.5 - 44.4 = 36.1 for a 15% overall profit. Thus the required price is about 1.504 per kilogram, which is about 25.3% above the marked price.

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