Answer:
Salman needs to sell each of the remaining chairs at a price of 252 each in order to gain 10% on the whole deal.
Explanation:
Salman bought 40 chairs at 175 each, so the total cost of all the chairs is:
Total Cost = 40 chairs * 175 per chair = 7,000
Now, he sold one-fourth of the chairs at a loss of 8%. One-fourth of 40 chairs is 40/4 = 10 chairs.
The total loss incurred on selling these 10 chairs at an 8% loss can be calculated as follows:
Loss = 10 chairs * 175 per chair * 0.08 (8% as a decimal) = 140
Now, let's calculate the remaining chairs he has (30 chairs) and the amount he needs to gain on the whole deal.
To gain 10% on the whole deal, he needs to make a profit of 10% of the total cost, which is:
Profit Target = 10% of 7,000 = 0.10 * 7,000 = 700
Now, let P be the price at which he needs to sell each of the remaining 30 chairs to achieve this profit. The total revenue from selling these chairs at that price will be:
Total Revenue = 30 chairs * P per chair
For Salman to achieve the desired profit, the total revenue should cover both the loss on the first 10 chairs and the desired profit. So we can write the equation:
Total Revenue = Total Cost - Loss + Profit Target
30P = 7,000 - 140 + 700
Now, solve for P:
30P = 7,560
P = 7,560 / 30
P = 252