Question

Bhajan Singh purchased 120 reams of paper at Rs.80 per ream. He spent Rs.280 on transportation, paid octroi at the rate of 40 paise per ream and paid Rs.72 to the coolie. If he wants to have a gain of 8%, what must be the selling price per ream?

Answer 1

Hint: First of all, find the total investment i.e., total cost price made by Bhajan Singh to purchase the reams. Then use the formula \[{\text{SP}} = \dfrac{{100 + {\text{Profit% }}}}{{100}} \times {\text{CP}}\] to find the total selling price of the reams which leads to find the selling price of one ream. So, use this concept to reach the solution of the given problem.

Complete step-by-step answer:
Given total number of reams = 120
Price of one ream = Rs.80
So, total price of the reams \[ = 120 \times 80 = Rs.9600\]
Price of transportation = Rs.280
Price of octroi per ream = 40 paise = Rs 0.40
So, total price paid to octroi \[ = 120 \times 0.40 = Rs.48\]
Price paid for the coolie = Rs.72
Hence, total investment made by Bhajan Singh \[ = Rs.\left( {9600 + 280 + 48 + 72} \right) = Rs.10,000\]
Thus, total cost price (CP) = Rs.10,000
Bhajan Singh wan profit of 8%.
We know the formula for selling price (SP) i.e., \[{\text{SP}} = \dfrac{{100 + {\text{Profit % }}}}{{100}} \times {\text{CP}}\].
So, selling price of the reams \[ = \dfrac{{100 + 8}}{{100}} \times 10000 = \dfrac{{108}}{{100}} \times 10000 = Rs.10800\]
Hence the total selling price of 120 reams = Rs.10,800
So, selling price of one ream \[ = \dfrac{{10800}}{{120}} = Rs.90\]
Thus, selling price of one ream is Rs.90

Note: As Bhajan Singh makes a profit percentage the selling price of the reams is always greater than the cost price of the reams. Remember that the cost price of the reams includes the price of transportation, coolie charges and octroi charges.