300 kg of rice was purchased at the rate of ₹20 per kg and sold at a profit of 5%. Compute the profit and the selling price per kg.
Show answer & explanation
Correct answer: A
Explanation
Given:
Quantity = 300 kg, Cost Price = ₹20/kg, Profit = 5%
According to the formula:
Profit = (Cost × Percentage) / 100
Selling Price = Cost Price × (1 + Profit%)
Total Cost = 300 × 20 = 6000
Profit = 5% of 6000 = 300
Total Selling Price = 6000 + 300 = 6300
Selling Price per kg = 6300 / 300 = 21
A profit of ₹300 was earned, and the selling price per kg is ₹21.