Alfa Ltd is the producer of Toffiee and it used to sell Toffee
through distributor on a condition that on selling the stock of
every 50 Toffee, he will get Rs 100 as commission . The distributor is
responsible to sell all those Toffees to retailers . If he marks the
Toffee at the price which is 30 % above the production cost (cost
price ) and allows a discout of Y % he sells total of 'X' Toffees
which is 40 less than total received by him to sell to retailers
is Rs 78 thousands. The commission received by distributor is
Rs 700 and he made a profit aof Rs 14 thousands on selling the Toffees .
If company added given commission in cost price and he
given stock of `(X + 450)` Toffees to another distributor who
Sold all stock, then find new cost price of one Toffee ?

Options

A. R s 220
B. Rs 202
C. Rs 204
D. Rs. 206

Answer

B

Explanation

Given, Commission received by the distributor =Rs. 700
So, the number of Toffees sold by distributor `=(700)/(100)xx50=350`
Total number of Toffees received by him in the whole stock to sell`=350+40=390`
Production cost of ecah Toffee`=(78000)/(390)=Rs. 200`
Marked price of each Toffee `=200xx1.3=Rs. 260`
Total selling price of 350 Toffees
`=350xx200+14000=Rs. 84000`
Selling price of each Toffee`=(84000)/(350)=Rs. 240`
Discount allow by employee (y)
`=(260-240)/(260)xx100=(20)/(260)xx100=7 (9)/(13)%`
Total stock which another distributor sold
`=(350+450)=800`
Total commission received by another distributor
`=(800)/(50)xx100 =Rs. 1600`
New cost price of one Toffee
`=200+(1600)/(800)=Rs. 202`