Question

A dealer bought 50 caps for Rs 1500. He sold 15 for Rs. 35 each and 15 for Rs. 40 each. At what price per cap should he sell the remainder to gain 15% on his outlay?

Answer 1

₹30/cap

Explanation:

To gain 15%, the dealer must have total revenue of ...

₹1500 × 1.15 = ₹1725

His revenue so far is ...

15 × ₹35 +15 × ₹40 = ₹1125

There are 50 -15 -15 = 20 caps remaining, and the dealer wants additional revenue of ₹1725 -1125 = ₹600. He must sell them at a price of ...

₹600/(20 caps) = ₹30/cap