Question

A bicycle dealer buys 30 Razorback cycles for ₹48000. Of these, 10 are with gears and the rest are without gears.(Assume that the cost price of geared and non-geared cycle is same). At what price must he sell each geared cycle so that if he sells the non - geared ones at $\frac{3}{4}$ 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

Cost price of 30 cycles = ₹ 48000

Total number of cycles = 30

Cost price (CP) of each cycle = $\frac{48000}{30}=₹1600$

20 non-geared cycles sold at $\frac{3}{4}$ of the price.
Selling price (SP) of each non-geared cycle = $\frac{3}{4}\times 1600$ = ₹1200

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

Overall a profit of 40% is made on ₹ 48000.

Profit = $\frac{40}{100}\times 48000$ = ₹19200

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

To earn an overall profit of 40% , he needs : ₹67200 - ₹24000 = ₹43200 = Total SP of 10 geared cycles

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