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A man having bought a quantity of rice for rupees 80 sells one-fourth of it at a loss of 5%, by what percent must he raise that selling price so that by selling the rest at the increase rate he may gain 5% on its outlet

1 Answer

3 votes

Answer:

about 14.04%

Explanation:

If a loss of 5% on sale of 1/4 of goods purchased for ₹80, you want to know the percentage increase in selling price required for the remainder if an overall gain of 5% is desired.

Unit price

The cost of 1/4 of the goods is (1/4)(₹80) = ₹20. If a loss of 5% was realized, the revenue from the sale was (1 -5%)(₹20) = ₹19. At that rate, the "unit price" for the entire quantity of goods is ...

(₹19)/(1/4) = ₹76

Additional revenue

The desired return of 5% on the original outlay means the man wants a total revenue of ...

(1 +5%)(₹80) = ₹84

On sale of 1/4 units, his revenue was ₹19, so he needs to price the remaining 3/4 to bring in (₹84 -19) = ₹65. The new unit price is then ...

(₹65)/(3/4) = ₹86.67

Percentage change

The increase in price per unit from ₹76 to ₹86.67 represents a percentage increase of ...

(86.67/76 -1) × 100% = (8/57) × 100% ≈ 14.035%

The selling price must be raised by about 14.04%.

answered
User Peter Nied
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