If 5500 copies are published and the transportation cost on them amounts to Rs. 82,500, then what should be the selling price of the book so that the publisher can earn a profit of 25%?

Rs. 187.50
Rs. 191.50
Rs. 175
Rs. 180

Correct answer: Rs. 187.50

Solution

Transportation cost per copy = 82,500 ÷ 5,500 = Rs. 15. Adding this to the other per-copy costs gives the total cost price per book. For a 25% profit, selling price = 125% of cost price, which gives Rs. 187.50.

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