Multiple choice

Passage

Directions: Read the following information and answer the question. PQR shop is selling different products in Mumbai and Maharashtra. Shop sold five different products namely A, B, C, D and E. Total revenue of the shop for the financial year 2019-20 is 75 lacs and the total sales of all products of the shop is 6,500 kg. An analysis of the products sold and total revenue generated by these products shows that the sales of product 'A' is 14% of the total sales and 20% of the total revenue of shop was produced by product A. Also, sales of product 'B' is 25% of the total sales and 19% of the total revenue of shop was produced by product B. Moreover, sales of product 'C' is 18% of the total sales and 22% of the total revenue of shop was produced by product C. In addition, sales of product 'D' and product E are 13% and 30% of the total sales respectively whereas 18% of the total revenue of shop was produced by product D and 21% of the total revenue of shop was produced by product E.

What is the percentage of profit earned from product 'D', if the cost price of product D is Rs. 1,300 per kg?

  1. 16%

  2. 18%

  3. 19%

  4. 23%

  5. 28%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total revenue is 75 lacs. Product D revenue is 18% of 75 lacs, which is 13.5 lacs. Total sales is 6,500 kg, and D's sales are 13% of 6,500, which is 845 kg. Cost price is 1,300 per kg, so total cost is 845 * 1,300 = 10,98,500 (10.985 lacs). Profit is 13.5 - 10.985 = 2.515 lacs. Profit percentage is (2.515 / 10.985) * 100, which is approximately 22.9%.

AI explanation

First, calculate the total revenue generated by product D by taking 18 percent of the 75 lac total revenue, which equals 13.5 lacs, or 1,350,000 rupees. Next, find the total sales volume of product D by taking 13 percent of the 6,500 kg total sales, which equals 845 kg. Divide the total revenue by the total weight to find the selling price per kg, which is 1,350,000 divided by 845, resulting in approximately 1,598 rupees per kg. Using the profit percentage formula of (Selling Price minus Cost Price) divided by Cost Price times 100, the profit is (1,598 minus 1,300) divided by 1,300 times 100, which results in 23 percent.

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