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A merchant bought 125kg of potatoes at rs 25 per kg. if 5 kg of potatoes were bad, at which price per kg must he sell the good potatoes to make a gross profit of 20% on the total cost?

(with step by step solution)
::))

User Nathan Calverley
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1 Answer

21 votes
21 votes

Answer:

rs 31.25/kg

Explanation:

He paid rs 25 per kg.

He bought 125 kg.

First, we find out the amount he paid.

total cost = unit cost * weight

total cost = (rs 25)/kg * 125 kg

total cost = rs 3125

He spent a total of rs 3125 buying the 125 kg of potatoes.

He wants to make a 20% profit on his cost, so the profit is

20% * rs 3125 =

= 0.2 * rs 3125

= rs 625

The amount of profit he wants is rs 625.

He must add the profit to his cost to calculate the total selling price.

rs 3125 + rs 625 = rs 3750

He must sell all the good potatoes for a total of rs 3750.

5 kg of potatoes were bad.

125 kg 5 kg = 120 kg

He can only sell 120 kg of good potatoes.

Now we calculate the selling price per kg.

(rs 3750)/(120 kg) = rs 31.25/kg

Answer: rs 31.25/kg

User Finickyflame
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