Question

A vendor purchased 720 lemons at ₹ 120 per hundred.10% of the lemons were found rotten which he sold at ₹ 50 per hundred. If he sells the remaining lemons at ₹ 125 per hundred, then his profit will be 16%.

Options

• True

• False

Answer 1

This statement is False.

Explanation:

Given, cost price of 100 lemons = ₹ 120

Cost price of 1 lemon = ₹ ${\displaystyle \frac{120}{100}}$

And cost price of 720 lemons = ${\displaystyle \frac{120}{100}\times 720}$ = ₹ 864

According to the question, 10% of the lemons were rotten.

∴ 10% of 720 lemons = ${\displaystyle \frac{10}{100}\times 720}$ = 72 lemons

Also, given, selling price of 100 rotten lemons = ₹ 50

Selling price of 1 rotten lemon = ₹ ${\displaystyle \frac{50}{100}}$

And selling price of 72 rotten lemons = ${\displaystyle \frac{50}{100}\times 72}$ = ₹ 36

Also, selling price of 100 good lemons = ₹ 125

∴ Selling price of good lemon = ₹ ${\displaystyle \frac{125}{100}}$

And selling price of (720 – 72) good lemons

= ${\displaystyle \frac{125}{100}\times (720-72)}$

= ${\displaystyle \frac{125}{100}\times 648}$

= ₹ 810

Now, total selling price of 720 lemons = 36 + 810 = ₹ 846

Clearly, selling price < cost price.

Therefore, vendor will bear loss.