A shopkeeper sold 24 shirts, each at a profit of 20% and 16 shirts, each at a profit of 10%. If he had sold all the 40 shirts, each at a profit of 15%, then his overall profit would have been reduced by ₹36. What is the cost price of each shirt?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹90
Let the cost price of 1 shirt be ₹x -
Then,
Money earned by selling 24 shirts for 20% profit = 24(x + 20% of x) = 24(x + 0.2x) = 24 × 1.2x = ₹28.8x
Money earned by sellig 16 shirts for 10% profit = 16(x + 10% of x) = 16(x + 0.1x) = 16 × 1.1x = ₹17.6x
Now,
Money earned by selling 40 shirts for 15% profit = 40(x + 15% of x) = 40(x + 0.15x) = 40 × 1.15x = ₹46x
Now,
According to the question-
(28.8x + 17.6x) - 46x = 36
46.4x - 46x = 36
0.4x = 36
x = 36 ÷ 0.4 = 90
Hence,
The selling price of each shirt is ₹90.