Question

Harish purchased 50 dozen bananas for Rs 135. Five dozen bananas could not be sold because they were rotten. At what price per dozen should Harish sell the remaining bananas so that he makes a profit of 20%?

Answer 1

Given cost price of 50 dozens bananas that Harish purchased, CP = Rs. 135

Bananas left after removing 5 dozen rotten bananas = 45 dozens

Effective CP of one dozen bananas = Rs. 135/45 = Rs. 3

Calculating the price at which Harish should sell each dozen bananas to make a profit of 20% (or 1/5), we get

Profit % = (Gain/CP) x100

To get a gain of 20% we give profit % = 20

And substitute 20 = (gain/135) x100

Gain = 270/10 = 27

We know; SP = CP + Gain

SP = 27 + 135

SP = 162

Now that SP is for 45 Dozens of bananas

Calculating for one dozen

= 162/45

= Rs. 3.6

Harish should sell the bananas at Rs. 3.60 a dozen in order to make a profit of 20%.