Question

A factory outlet has decided to dispose of its old stock by selling each set of cups for ₹ 287 and recovering only the variable cost. If the fixed cost is 18% of the total cost, what was the cost price of each set of cups?
1. ₹ 320
2. ₹ 350
3. ₹ 325
4. ₹ 340

Answer 1

Correct Answer - Option 2 : ₹ 350

Given:

SP of each set = Rs. 287

Fixed cost = 18% of total cost

Explanation:

There is a loss of 18 %

∴ SP is 82% of CP

82% of CP = Rs. 287

CP = Rs. (287/82) × 100

⇒ Rs. 350

∴ The cost price of each set of cup is Rs. 350