Vinod makes a profit of Rs. 110 if he sells a certain number of pencils he has at the price of Rs. 2.5 per pencil and incurs a loss of Rs. 55 if he sells the same number of pencils of Rs. 1.75 per pencil. What should be the selling price of all the pencils in order to make a profit of 15%?
Solution
Correct Answer: Option A
Let number of pencils be ‘x’
Profit = 110
Selling price =2.5x
Cost price = SP – PROFIT = 2.5X – 110
Similarly, selling price =1.75x
Loss = 55
Cost price = SP + loss = 1.75x + 55
Equating two cost prices we get x = 220
∴ Vinod has 220 Pencils.
Total cost price = 1.75 × 220 + 55 = Rs. 440
In order to make a profit of 15%, selling price = 440 + (15% of 440) = 440 + 66 = 506
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