A shopkeeper buys 1800 kg wheat for ₹32,400. If 20% of this wheat is spoiled due to rain, at what rate (₹/kg) should he sell the rest to earn 20%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 27
The quantity of spoiled wheat = (20/100) × 1800 = 360 kg
The quantity of good wheat = 1800 kg - 360 kg = 1440 kg
The total cost price (CP) = ₹32,400
Profit = 20%
Total selling price (SP) = (120/100) × 32400 = 38880
Selling price per kg = Total SP/Quantity of good wheat = 38880/1440 = 27
Therefore, the shopkeeper should sell the remaining wheat at ₹27/kg.