Multiple choice

A purchased a computer costing Rs. 10, 000. Repairing expenses Rs. 1, 000 and miscellaneous expenses Rs. 500 were incurred by him. He sold the computer at 20% margin on selling price. The sales value will be

  1. Rs. 12, 500

  2. Rs. 11, 000

  3. Rs. 14, 375

  4. Rs. 13, 800
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total cost = Rs. 10,000 (purchase) + Rs. 1,000 (repairs) + Rs. 500 (miscellaneous) = Rs. 11,500. With a 20% margin on selling price, cost represents 80% of selling price. Therefore, selling price = Rs. 11,500 / 0.80 = Rs. 14,375. Margin = Rs. 14,375 - Rs. 11,500 = Rs. 2,875 (20% of Rs. 14,375).

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