A merchant earns a profit of 20% by selling a basket containing 80 apples

A merchant earns a profit of 20% by selling a basket containing 80 apples which cost Rs 240 but he gives one-fourth of it to his friend at cost price and sells the remaining apples. In order to earn the same profit, at what price must he sell each apple?

  1. Rs. 4.00
  2. Rs. 3.60
  3. Rs. 3.00
  4. Rs. 3.80

Answer

Cost price of each apple = 240/80 = 3

For 20% profit, selling price = 240 × (1 + 0.2) = 288

Now, he gives 20 apples to his friend at cost price, so he needs to sell the remaining apples at a price of 288 - 60 = 228 (since cost price of 20 apples = 3 × 20 = 60)

So, Selling price for remaining apples should be = 228/60 = Rs 3.80

The correct option is D.