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​In a factory, producing a product costs ₹2,000. From the factory to the showroom, due to transportation, the production cost increases by 10%. From t
Question

In a factory, producing a product costs ₹2,000. From the factory to the showroom, due to transportation, the production cost increases by 10%. From the showroom, the product is sold at a price that includes a total profit of 15% over the total cost of production and transportation. At what price was the product sold from the showroom?

A.

 ₹2,500
 


B.

₹2,250

C.

₹2,300

D.

₹2,530

Correct option is D

Given:

Production cost = ₹2,000

Transportation cost = 10% of production cost

Selling price = 15% above the total cost (production + transportation)

Formula used:

Total cost = Production cost + Transportation cost

Selling price = Total cost + 15% of Total cost

Solution:

Transportation cost = 10% × 2000

=> Transportation cost = 0.10 × 2000 = ₹200

Total cost = 2000 + 200 = ₹2,200

Selling price = 2200 + 15% of 2200

=> Selling price = 2200 + 0.15 × 2200

=> Selling price = 2200 + 330 = ₹2,530

∴ The correct answer is option (3).

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