The Pie chart given below presents the distribution of costs of making a water bottle by a company. If the company earns 20% on cost per bottle and the cost of packaging one bottle is ₹0.50, then what is the selling price of one bottle?
Answer & explanation
Correct answer: option 2
20% = \(\frac{1 }{5}\)
ATQ ,
5% of total cost on Water bottle = 0.50
Total cost on bottle = \(\frac{0.50 }{5}\) × 100
= 10
Profit earned on water bottle = \(\frac{1 }{5}\) × 10 = 2
Now , Selling price of bottle = 10 + 2 = Rs. 12