Question

A purchased an old computer costing Rs. $10,000$ and incurred Rs. $1,000$ on its repair and Rs. $500$ on its packing. He sold the computer at $20\%$ margin on selling price. The sales value will be _________________.

• A. Rs. $12,500$
• B. Rs. $11,000$
• C. Rs. $14,375$
• D. Rs. $13,800$

Answer 1

The correct option is C Rs. $14,375$

Gross Margin is 20% on Selling Price

If Selling Price is 100

Than cost will be 80% of the selling price

that means Margin on cost becomes 20/80 i.e. 25% on cost

Computer Costing Rs.10000

Repairs Rs. 1000

Packing Rs. 500

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Total Cost Rs.11500

Margin @25% Rs. 2875

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Selling Price Rs.14375

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