NandishSS wrote:Jack gave 20% discount on sale of 15 toys & generated revenue of 600$. He earned 25% profit on this sale. Next day he sold 20 toys without any discount. what is his gross profit in two days?
a) 240 $
b) 360 $
c) 480 $
d) 510 $
e) 550 $
OA: C
Source: Expert's Global practice test
Since $600 is the discounted price after a discount of 20%, we have 80% of MRP = 600. Thus, MRP of 15 toys = 600/80% = $750
Thus, MRP of one toy = $750/15 = $50.
Since Jack earned 25% profit, 125% of Cost = $600. Thus, Cost of 15 toys = $600/125% = $480. Cost per toy = 480/15 =$32
Profit on sale of 15 toys = Sale value - Cost price = 600 - 15*32 = 600 - 480 = $120
Next day scenario:
Sale price of 20 toys = 20*MRP = 20*50 = $1000
Cost price of 20 toys = 20*Cost = 20*32 = $640
Profit = Sale value - Cost price = 1000 - 640 = $360
Total profit = Profit on day 1 + Profit next day = $120 + $360 = $480.
The correct answer:
C
Hope this helps!
-Jay
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