Question

Choose the correct answer from the alternatives given :
Mr. Ram runs a clothing store. His overhead expenses are 32% and his profits are 12% of his sale. At what price should he sell a raincoat which costs him Rs. 10.50 ?

• A. Rs. 13
• B. Rs. 15.52
• C. Rs. 12
• D. Rs. 19

Answer 1

The correct option is B Rs. 15.52

Cost price of umbrella $=Rs.10.50$

overhead expenses $=32$% $=0.32$

Required profit $=12$% $=0.12$

So, Selling price of umbrella $=Rs.10.50\times 1.32\times 1.12$

$=Rs.15.52$

So, selling price $=Rs.10.50\times 1.32\times 1.12$

$=Rs.15.52$.