If a shopkeeper sells sugar at ₹44.8 per kg, he is able to make a 12% profit. Due to water seepage, of the sugar is damaged. What should now be the selling price per kg of the rest of the sugar to have a 5% profit?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹52.5.
Selling price (SP) = ₹44.8 per kg
Cost price (CP) = (100/112) × 44.4 = 40
Damaged sugar = 1/5
Remaining sugar = 1 - (1/5) = 4/5
Total cost = 40 × (4/5) = 32
Total revenue needed = (105/100) × 32 = 33.6
New selling price per kg = 33.6/(4/5) = 42
Final selling price per kg = 42 × (5/4) = 52.5
Therefore, the shopkeeper should now sell the sugar at ₹52.5 per kg to have a 5% profit.