An electronics store orders 150 portable speakers at a cost of ₹400 each. The owner plans to price them so that selling only 120 speakers would guarantee a 40% profit on the total investment. However, a local event leads to the sale of 135 speakers. If the remaining speakers have no resale value, calculate the store's actual profit percentage on the total investment.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 57.5%
Total cost = 150 × 400
Total cost = 60000
Required revenue for 40% profit = 60000 × 140/100
Required revenue = 84000
Selling price per speaker = 84000 / 120
SP per unit = 700
Actual revenue = 135 × 700
Actual revenue = 94500
Profit = 94500 − 60000
Profit = 34500
Profit % = (34500 / 60000) × 100
Profit % = 57.5%