Kamlesh purchased 120 reams of paper at ₹ 100 per ream and the expenditure on transport was ₹ 480. He had to pay an octroi duty of 50 paise per ream and the coolie charges were ₹ 60. What should he charge per ream to gain 40%?
Correct Answer: ₹ 147
Explanation:
Total cost price = ₹ (120 x 100) = ₹ 12000
Total expenditure = 480 + (1/2) x 120 + 60 = ₹ 600
Total cost price = 12000 + 600 = ₹ 126000
Gain = 40%
SP of 120 reams = 12600 x (140/100) = ₹ 17640
∴ SP per ream = 17640/120 = ₹ 147
