Theory question 110
Commercial ArithmeticA woman bought 130 kg of tomatoes for ₦52,000.00. She sold half of the tomatoes at a profit of 30%. The rest of the tomatoes began to go bad, she then reduced the selling price per kg by 12%. Calculate:
(a) the new selling price per kg;
(b) the percentage profit on the entire sales if she threw away 5 kg of bad tomatoes.
Show the model answer
Model answer
(a) Cost per kg = 52,000/130 = ₦400; first selling price = 400 × 1.3 = ₦520 per kg
New price = 520 × 0.88 = ₦457.60 per kg
(b) First half: 65 × 520 = ₦33,800
Second half: 65 − 5 = 60 kg × 457.60 = ₦27,456
Total sales = ₦61,256; profit = ₦9,256
Percentage profit = 9,256/52,000 × 100 ≈ 17.8%
Explanation
The 12% cut is on the selling price (₦520), not on the cost price.