Question

A manufacturer makes 1500 articles at the cost of 120 paisa per article. He fixes the selling price such that if only 1200 articles are sold, he makes \(80%\) profit on the total outlay. However, 240 articles get spoilt and he sells the remaining stock at this price. Find the actual profit percentage on total outlay.

• A. 84
• B. 82
• C. 89
• D. 86

Hint:

When a price is set for a target profit on total outlay}, compute the per-unit price from that target revenue first, then apply real quantities sold.

Answer 1

The Correct Option is C

Step 1: Compute total outlay
Cost per article \(=\) 120 paisa \(=\) \(₹ 1.20\).
Total cost \(C = 1500\times 1.20=₹ 1800\).
Step 2: Fix the marked selling price per article
Price chosen so that selling only 1200 items gives \(80%\) profit on total outlay.
So required revenue \(= C + 0.8C = 1.8C = 1.8\times 1800=₹ 3240\).
Hence price per article \(p=\dfrac{3240}{1200}=₹ 2.70\).
Step 3: Actual sale and profit
Spoilt \(=240⇒\) sold \(=1500-240=1260\) articles.
Actual revenue \(R=1260\times 2.70=₹ 3402\).
Profit \(=R-C=3402-1800=₹ 1602\).
Profit % on outlay \(=\dfrac{1602}{1800}\times 100=89%\).
\[ \boxed{\text{Actual Profit }=89%} \]