A merchant purchased 650Kg of wheat at ₹50 per Kg. He sold 250Kg of it at a profit of 24% and 200Kg at a loss of 24%. At what rate per Kg (in₹) should he sell the remaining wheat to gain 20% on his initial investment?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 79.5.
Total Cost Price (CP): 650 × 50 = ₹32,500
Target SP for 20% gain: 32,500 × 1.2 = ₹39,000
Selling price of 250 kg at 24% profit: 250 × 50 × 1.24 = ₹15,500
Selling price of 200 kg at 24% loss: 200 × 50 × 0.76 = ₹7,600
Remaining SP needed: 39000 − (15500 + 7600) = ₹15,900
Remaining wheat = 200 kg
Required rate=15900/200 = ₹79.50