A dealer buys 50 chairs for ₹50,000 but 20 of them are damaged. He decides to sell each of the damaged chairs at 3/4th of the selling price of a normal chair. What should be the selling price of the normal chair so that he may make a profit of 35% on the whole transaction?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹1,500.
Selling price = Cost price × (100 + profit %)/100
Cost price of 50 chairs = Rs. 50,000
Let the selling price of one normal chair be Rs. x
Selling price of 20 damaged chair = 20x(3/4) = 15x
The selling price of 30 undamaged chairs = 30x
Selling price of 50 chairs = 50000(135/100) = 67500
67500 = 45x
x = 1500