RGS Prelim 1997 Q8
A man buys 50 cartons of canned drinks at 30 cents per can. Each carton contains 24 cans and 20% of the cans are leaking.
(i) What should be the selling price of each of the remaining cans if he wants to make a profit of 60%?
(ii) If he only manages to sell 500 cans, what is the percentage loss?
(assuming that he cannot sell the balance)
Answer:
(i) Num of sellable cans = 50 * 24 * 80% = 960 cans (because 20% is not sellable)
Cost price = 50 * 24 * $0.30 = $360
To make a profit of 60%, he should sell for a total of $360 * 1.6 = $576
Hence, selling price for each can should be $576 / 960 = $0.60
The selling price should be 60 cents for each of the remaining cans if he wants to make a profit of 60%.
(ii) If he manages to sell 500 cans, he would have 500 * $0.60 = $300
There is a loss of $360 - $300 = $60
Percentage loss = 60/360*100 = 16.67%
