A person purchases 100 pens at a discount of 10%. The net amount of money spent by the person to purchase the pens is Rs 600. The selling expenses incurred by the person are 15% on the net cost price. What should be the selling price for 100 pens in order to earn a profit of 25%?
- ARs 802.50
- BRs 811.25
- CRs 862.50Correct
- DRs 875
Explanation
To find the correct selling price, we follow three simple steps:
-
Net Cost Price: The question states the person spent 600 rupees to purchase the 100 pens.
-
Total Cost Price: Selling expenses are 15 percent of the net cost price. 15 percent of 600 is 90 rupees. Total Cost is 600 plus 90, which equals 690 rupees.
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Final Selling Price: To earn a profit of 25 percent on the total cost: 25 percent of 690 is 172.50 rupees. Selling Price is 690 plus 172.50, which equals 862.50 rupees.
The discount mentioned at the start is already factored into the 600 rupees spent, so it does not require additional calculation. Therefore, the correct option is C.
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