Multiple choice

Passage

Directions: The question below is followed by three statements labelled I, II and III. You have to consider the information in all the three statements and decide which of the statements is/are necessary to answer the question. Indicate your answer accordingly.

What is the labelled price of the article? I. Cost price of the article is Rs. 500. II. Selling price after offering 5% discount on the labelled price is Rs. 608. III. Profit earned would have been 28% if no discount was offered.

  1. Only I

  2. Only III

  3. Both II and Ill

  4. Only ll

  5. Only I and II
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement II provides the selling price and the discount percentage, which allows for the calculation of the labelled price directly. Statement I gives the cost price, and Statement III gives a hypothetical profit percentage, but neither is needed if the labelled price can be determined from II alone.

AI explanation

The labelled price can be found by setting the selling price equal to the labelled price minus the 5% discount. Using the selling price of Rs. 608 from statement II, the equation is 608 equals 0.95 times the labelled price, which solves to a labelled price of Rs. 640. Statement I is unnecessary, and while statement III confirms a plausible profit margin relative to a cost price of Rs. 500, only statement II provides the direct mathematical relationship needed to calculate the exact labelled price. Statement II alone is sufficient.

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