Question

Chander bought 10 tea sets at a cost of $1000 for each set. Since two sets were damaged he sold them at a loss of 20%. Ar what price should he sell the remaining sets so as to make an overall profit of 5%

Answer 1

Answer:

Total cost of 10 tea sets @ 1000$ = 10,000 $

Cost of 2 damaged tea sets @ 20% loss = [(100-20)× (1000+1000)] ÷ 100 = 1600$ ( normally it should have been sold at at least 2000$ at no profit)

For an overall profit of 5% the price received after selling the tea sets should be = (105 × 10000)÷100 = 10500$

Cost remaining after the selling the damaged tea sets At 20% loss = 10500 - 1600 = 8900 $ ( which costs 8000$ at no profit)

So the remaining 8 tea sets should be sold at 8900/8 = 1112.5 $ per set in order to make an overall profit if 5%.