Multiple choice

1,000 kg of oranges are consigned to a wholesaler, the cost being Rs. 8 per kg, plus Rs. 925 of freight. It is concluded that a loss of 15% is unavoidable. The cost per kg of orange will be

  1. Rs. 9.41

  2. Rs. 10.00

  3. Rs. 10.50

  4. Rs. 8.93
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The consignment includes 1,000 kg oranges at Rs. 8/kg = Rs. 8,000 plus Rs. 925 freight, totaling Rs. 8,925. With 15% unavoidable loss, only 850 kg (85% of 1,000) will be sold. The cost per kg of saleable oranges = Rs. 8,925 / 850 kg = Rs. 10.50. This spreads the total cost (including loss-bearing units) over the saleable quantity. Option B ignores the freight component, and Option A uses an incorrect calculation base.

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