Multiple choice

Passage

Read the given information carefully and answer the questions given below. A company is the producer of Mobiles and it used to sell Mobiles through distributor on a condition that on selling the stock of every 70 mobiles , he will get Rs 1470 as commission. The distributor is responsible to sell all those Mobiles to retailers. If he marks the Mobiles at the price which is 35 % above the production cost (cost price) and allows a discount of Q% . He sells total of ‘P’ Mobiles which is 60 less than total received stock by him. Total production price of whole stock of Mobiles received by him to sell to retailers is Rs 22 lakhs. The commission received by distributor is Rs 10290 and he made a profit of Rs 3.43 lakhs on selling the Mobiles .

If the distributor wants to earn a profit of 22.5% by giving a discount of 20% , then he will have to mark the mobile price by what % more than the cost price ? ( In correct decimal digits)

  1. 43.125 %

  2. 48.25 %

  3. 54.215 %

  4. 57.521 %

  5. None of these
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Let CP = cost price. Desired profit = 22.5%, so SP = 1.225 × CP. Discount = 20% on marked price MP, so SP = 0.8 × MP. Therefore 0.8 × MP = 1.225 × CP, giving MP = 1.53125 × CP. Markup over CP = (1.53125 - 1) × 100 = 53.125%. None of the given options (43.125%, 48.25%, 54.215%, 57.521%) match 53.125%, so 'None of these' is correct.

Keep practicing — related questions