Kapila bought 100 frocks at the rate of Rs. 320 each. Travel expenditure was Rs. 1000. If she increased the price of the frock by Rs 1.50 each and labor expenditure was Rs. 500 and she wants to make a profit of 10%, then what will be the selling price of each frock?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹370.15
Kapila bought 100 frocks at the rate of ₹ 320 each.
The total price of all frocks= 320 x 100 = ₹ 32000
Travel expenditure was ₹1000 and labor expenditure was ₹500
The total price of all frocks after adding expenditure = 32000 + 1000 + 500
= ₹33500
New price of each frock = 3350/100 = ₹335
Profit % = (Selling price - Cost price)/Cost price× 100
After she increased the price of each frock by ₹1.50, the price of each frock = ₹336.50
If she wants to make a profit of 10%, then the selling price of each frock would be
= 110% of 336.50 = {110/100} × 336.50 = ₹ 370.15