Question

A supplier provides imported TV'S to a retailer each year. Each TV costs Rs 10000 for the supplier. $5\%$ of the TVs are defective and they are replaced
without extra cost. If the supplier still makes a profit of $20\%$ , what is the SP of each TV to the retailer?

• A. 12000
• B. 12600
• C. 13000
• D. 13500

Answer 1

The correct option is B

12600

To make calculation simpler, take cost of each TV as 1000
$5\%$ defective means, out of every 20, 1 is defective
cost of 20 TVs = Rs. 20000
To make a profit of 20000 = 1.2 $\times$ 20000 = 24000

Selling 19 TVs at 24000, entails a SP of $\left(\frac{24000}{29}\right)$=12600 ( approx)