Question

A bicycle dealer buys 30 Razorback cycles for ₹ 48000. Of these, 10 are with gears and the rest are without gears. At what price must he sell each geared cycle so that if he sells the non - geared ones at 3/4th of their cost price, he makes a profit of 40% on his total outlay.

• A. ₹ 4320
• B. ₹ 4520
• C. ₹ 5020
• D. ₹ 4200

Answer 1

The correct option is A

₹ 4320

CP of each cycle = 48000/30 = ₹ 1600

SP of one non-geared cycles is ${\frac{3}{4}}^{th}$ of the price : $\frac{3}{4}\times$1600 = ₹ 1200

Total SP of 20 non-geared cycles = 1200 $\times$ 20 = ₹ 24000

Overall 40% profit on ₹ 48000 = $\frac{40}{100}\times$48000 = ₹ 19200

$\therefore$ total SP must be ₹ 48000 + ₹ 19200 = ₹67200

To earn a profit of overall 40% , he needs : ₹ 67200 - ₹ 24000 = ₹ 43200

$\therefore$ The SP for each geared cycle should be = $\frac{43200}{10}$ = ₹ 4320