The cost price of 120 bags is ₹ 15 each. 40 of them were sold for ₹ 18 each. At what price should the remaining be sold in order to get an overall profit of ₹ 4 per bag?
- A₹ 19.5
- B₹ 22.5
- C₹ 16
- D₹ 20
Solution & Step-by-step Explanation
Total cost price of 120 bags:
Total CP=120×15=₹ 1800
Desired overall profit is ₹ 4 per bag:
Total Profit=120×4=₹ 480
Thus, total required selling price:
Total Required SP=1800+480=₹ 2280
Selling price of the first 40 bags:
SP of 40 bags=40×18=₹ 720
Remaining revenue needed from the rest of the bags:
Remaining SP=2280−720=₹ 1560
Remaining number of bags:
Remaining bags=120−40=80
Required selling price per bag for the remaining bags:
SP per remaining bag=
80
1560
=₹ 19.5
Total CP=120×15=₹ 1800
Desired overall profit is ₹ 4 per bag:
Total Profit=120×4=₹ 480
Thus, total required selling price:
Total Required SP=1800+480=₹ 2280
Selling price of the first 40 bags:
SP of 40 bags=40×18=₹ 720
Remaining revenue needed from the rest of the bags:
Remaining SP=2280−720=₹ 1560
Remaining number of bags:
Remaining bags=120−40=80
Required selling price per bag for the remaining bags:
SP per remaining bag=
80
1560
=₹ 19.5