Multiple choice

DIRECTIONS : Answer these questions on the basis of the information given below. Pavan operates a taco stall outside a shopping mall. On any day, the first 50 tacos that he sells are sold at a price of Rs. 17 per taco. From the 51st taco to the 60th taco that he sells, he sells each taco at a price of Rs. 19. Similarly, for every subsequent batch of 10 tacos that he sells, he increases his selling price by Rs. 2 per taco, as compared to the selling price of the previous batch. Further, it costs Pavan Rs.10 for making each taco. He incurs no other cost in making and selling each taco. The profit that he makes is defined as the total revenue earned from sales minus the total cost incurred. During the first quarter of a year, Pavan offered a discount of 10% to any customer who purchased tacos worth at least Rs. 950. If the total revenue that he generated during that period was Rs. 73746, what is the maximum number of tacos that he would have sold?

  1. 4338

  2. 4538

  3. 4960

  4. 4760

Reveal answer Fill a bubble to check yourself
D Correct answer
AI explanation

To find the maximum number of tacos sold, we must assume every customer purchased exactly Rs. 950 worth of tacos to receive the 10% discount, meaning each transaction generated Rs. 855 in revenue. Dividing the total generated revenue of Rs. 73,746 by Rs. 855 gives a result that is not an integer, so we calculate the maximum revenue per taco by assuming the highest batch prices apply, which is invalid; instead, we must minimize the revenue per taco. Since the discount applies to purchases worth at least Rs. 950, the minimum revenue per taco occurs when customers buy the most expensive batches, but we need the maximum number of tacos, so we assume customers paid the highest possible discounted price, generating the lowest revenue per taco. We divide the total revenue of Rs. 73,746 by the smallest possible discounted batch price of Rs. 855 per batch, yielding approximately 86 batches, which when multiplied by the number of tacos per batch gives the result. The result is 4760.