Question

John buys four old tractors for Rs 2 lakh. He spent a total of 3 lakhs in the maintenance and repair of these four tractors. If he already sells one tractor out of four tractors for Rs. 1 lakh, then what is the average selling price of the remaining 3 tractors to get 40% total profit?

A. ₹ 1.5 lakh

B. ₹ 1.2 lakh

C. ₹ 2 lakh

D. ₹ 2.3 lakh

1. A
2. B
3. D
4. C

Answer 1

Correct Answer - Option 4 : C

Given:

C.P = 2 lakh

Repair and maintenance = 3 lakh

Profit % = 40%

Formula used:

Profit % = {(S.P –  C.P)/C.P} × 100

Calculation:

Initial CP = 2 lakh

According to questions

⇒ Total C.P = 2 + 3 = 5 lakh

To get 40% profit on all four tractor the S.P will be

Profit % = {(S.P –  C.P)/C.P} × 100

⇒ 40 = {(S.P – 5)/5} × 100

⇒ 0.4 × 5 = S.P – 5

⇒ S.P = 7 lakh

But he sale one tractor for 1 lakh So, the remaining amount to get 40% profit

⇒ 7 – 1 = 6 lakh 

Now average amount of S.P of remaining 3 tractor = 6/3 = 2 lakh

∴ The average selling price of the remaining 3 tractors to get 40% total profit is 2 lakh.