Question

A person purchases \[100\] pens at a discount of\[10%\] . The net amount of money spent by the person to purchase the pens is\[Rs\text{ }600\] . The selling expenses incurred by the person are \[15%\] on the net cost price. What should be the selling price for \[100\] pens in order to earn a profit of \[25%\] ?
A $Rs\text{ }802.5$
B $Rs\text{ }811.25$
C $Rs\text{ }862.5$
D $Rs\text{ }875$

Answer 1

Hint: Here we use the concept of Profit and Loss.
Required Formula:
$SP = \dfrac{{100 + Profit }}{{100}} \times CP$
Given: A person purchases \[100\] pens at a discount of \[10%\].
Cost Price $(CP)$ of \[100\] pens is\[Rs\text{ }600\]
Selling Expenses $=15%$ of net cost price.

Complete step-by-step answer:
\[Selling\text{ }expenses=15%\times 600=Rs\text{ }90\]
\[\begin{align}
  & Total~CP=CP+Selling\text{ }Expenses \\
 & \text{ }=600+90=Rs\text{ }690 \\
\end{align}\]

To earn profit of \[25%\],
\[\begin{align}
  & SP~=\dfrac{100+25}{100}\times 690 \\
 & \text{ =}\dfrac{125}{100}\times 690 \\
 & \text{ =862}\text{.5} \\
\end{align}\]
Therefore, selling price for pens in order to earn a profit of \[25%\] is $Rs\text{ }862.5$

Note: In such type of questions which involves concept of Profit and Loss knowledge about the formula and the terms involved is needed. Frame the equations accordingly to get the required value.