Multiple choice

Directions: An outlet retailer deals in all types of items ranging from clothes to general store items. He works out the price of an item in the following way: 1. The CP of the item is multiplied by 0.7 and 1.9 to obtain the price range of the product. 2. The marked price of the item is fixed at 1/8th of the sum of thrice the lowest value of price and 4 times the highest value of price. 3. Finally, a 5% discount is given on the article. What is the profit earned by the outlet retailer on purchase of an item by a customer that costs$1200 to the outlet retailer?

  1. $282.25
  2. $182.25
  3. $82.25
  4. $180

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

CP is 1200. Price range is 1200 * 0.7 = 840 (low) and 1200 * 1.9 = 2280 (high). Marked Price = (1/8) * (3 * 840 + 4 * 2280) = (1/8) * (2520 + 9120) = 11640 / 8 = 1455. Selling Price after 5% discount = 1455 * 0.95 = 1382.25. Profit = 1382.25 - 1200 = 182.25.

AI explanation

First calculate the lowest and highest price values by multiplying the cost of 1200 by 0.7 and 1.9 to get 840 and 2280. The marked price is fixed at one-eighth of the sum of thrice the lowest value (2520) and four times the highest value (9120), yielding 11640 divided by 8 for a marked price of 1455. Applying the 5 percent discount gives a final selling price of 1455 times 0.95, which equals 1382.25. The profit earned is the selling price minus the cost price (1382.25 minus 1200), resulting in a profit of 182.25.

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