By selling 32 oranges for a rupee, a man loses 40%. How many oranges should he sell for Rs 1 to earn a profit of 20%?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 16
The cost of the oranges does not change. At a 40% loss he receives 60% of their cost; for a 20% profit he must receive 120% of their cost, that is, twice as much money for the same oranges.
60% of the cost price of 32 oranges \(=\) Rs 1
Cost price of 32 oranges \(\displaystyle =\frac{100}{60}=\frac{5}{3}\) rupees
Selling price of 32 oranges for a 20% profit \(\displaystyle =\frac{5}{3}\times1.2=\) Rs 2
Number of oranges for Rs 1 \(\displaystyle =\frac{32}{2}=16\)
He should sell 16 oranges for a rupee.