ExamVeda
Login
Home
Profit and Loss
?

A pharmaceutical company made 3000 strips of tablets at a cost of Rs. 4800. The company gave away 1000 strips of tablets to doctors as free samples. A discount of 25% was allowed on the printed price. Find the ratio profit if the price is raised from Rs. 3.25 to Rs. 4.25 per strip and if at the latter price, samples to doctors were done away with. (New profit / Old profit).

Answer & Solution
Correct Answer: Option B
Total sales revenue (Old) = 2000 × 3.25 × 0.75 = 4875 [0.75 as 25% discount was allowed]
Profitold = Total sales revenue - 4800
= 4875 - 4800 = 75
Total sales revenue (New) = 3000 × 4.25 × 0.75 = 9562.5 [New price is calculated on doctors samples as well.]
Profitnew = 9562.5 - 4800 = 4762.5
Ratio,
$$\frac{{{\text{Profi}}{{\text{t}}_{{\text{new}}}}}}{{{\text{Profi}}{{\text{t}}_{{\text{old}}}}}} = \frac{{4762.5}}{{75}} = 63.5$$
Examveda
Question posted by Examveda
Community

Join the Discussion

2 Comments
Karthika
Karthika 11 years ago
very useful for exams....
Purushothaman G
Purushothaman G 11 years ago
thanks