Sukhen purchased some perishable items for sale but 15% of those items could not be sold and went bad. However, Sukhen managed to sell the rest of the items at a price that helped him earn an overall profit of 19%. At what percentage above the cost price of each item did Sukhen sell each of the items that did NOT go bad?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 40%.
Let Suken purchased the item for sale = 100 units
the cost of the each item = Rs. 100
15% items to be bad
Remaining good items for sale = 100 - 15 = 85 units
Net profit earns = 19%
Total cost price = 100 × 100 = Rs. 10000
The total selling price = 10000 × 119/100 = Rs. 11900
The selling price of good items = 11900/85 = Rs. 140
Hence, the required Percentage = (140 - 100) × 100/100 = 40 %