Question

A man ordered 25 crates of papaya for Rs. 5000. But 5 crates got misplaced and as a result he only got 20 crates for the price of 25 creates. In order to earn a profit of 30%, he would have to increase the selling price by what percent?

• A. 25%
• B. 20%
• C. 33.33%
• D. 30%

Answer 1

The correct option is D 30%

Total cost per crate $=\frac{5000}{25}=Rs.200$ per crate
So, the selling price should have been = 200*1.3=Rs.260 per crate
After losing 5 crates, his effective cost price is = $\frac{500}{20}$ = Rs.250 per crate
So, his selling price should be = 250$\times$ 1.3 = Rs.325 per crate
Percentage increase $=\frac{325-250}{250}\times 100=30\%$