Question
A man purchased 100 rolls of paper for Rs. 70 per roll.
He spent Rs. 850 on their transportation. He also paid 30 paise per roll for packing of each roll. At what price must he sell each roll to gain 20% overall?Solution
Effective cost price of 100 rolls of paper = (100 × 70) + 850 + (100 × 0.30) = 7000 + 850 + 30 = Rs. 7880 Selling price at 20% profit = 1.20 × 7880 = Rs. 9456 Therefore, selling price of each roll of paper = 9456/100 = Rs. 94.56
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