Question

Suresh consigned 2,000 pieces of goods to his agent costing 30 each and an invoice price of 20% over cost price. 4/5th of the goods were sold by Agent at a profit margin of 25% on his cost. Sale value of goods will be:

• A. 90,000
• B. 60,000
• C. 72,000
• D. 75,000

Answer 1

Answer: (C)

72,000

Invoice Price is the final amount charged by the seller for its goods.

$InvoicePrice=Costprice+Markedupprice$

Substitute values in the above equation

$InvoicePrice=2000\times Rs30+\frac{20}{100}\times 60,000=Rs60,000+Rs12,000=Rs72,000$

The Agent sold only 4/5 of the goods

$GoodsSold=\frac{4}{5}\times 60,000=Rs57,600$

$SaleValue=Goodssold+ProfitMargin$

Substitute values in the above equation

$SaleValue=Rs57,600+\frac{25}{100}\times Rs57,600=Rs72,000$

Hence the sale value of goods is $Rs72,000$.