A company earns `4%` profit up to sales of Rs 20000 and for sales above Rs 20000 company earn profit of `6%`. Find total sale of company if total profit earned is Rs 3800.

Options

A. Rs 45000
B. Rs 50000
C. Rs 60000
D. Rs 70000

Answer

To solve the problem, we need to break it down into steps.

### Step 1: Understand the Profit Structure
The company earns:
- 4% profit on sales up to Rs 20,000
- 6% profit on sales above Rs 20,000

### Step 2: Calculate Profit from Sales up to Rs 20,000
If the sales amount to Rs 20,000, the profit can be calculated as:
\[ \text{Profit from first } 20,000 = 4\% \text{ of } 20,000 = \frac{4}{100} \times 20,000 = 800 \]

### Step 3: Determine Total Profit
The total profit earned by the company is Rs 3,800. Since we already calculated Rs 800 from the first Rs 20,000, we need to find out how much profit is earned from sales above Rs 20,000:
\[ \text{Profit from sales above } 20,000 = \text{Total Profit} - \text{Profit from first } 20,000 \]
\[ \text{Profit from sales above } 20,000 = 3,800 - 800 = 3,000 \]

### Step 4: Calculate Sales Above Rs 20,000
The profit from sales above Rs 20,000 is earned at a rate of 6%. Let \( x \) be the amount of sales above Rs 20,000. The profit from this amount can be expressed as:
\[ \text{Profit from sales above } 20,000 = 6\% \text{ of } x = \frac{6}{100} \times x \]
Setting this equal to the profit calculated in Step 3:
\[ \frac{6}{100} \times x = 3,000 \]

### Step 5: Solve for \( x \)
To find \( x \), we can rearrange the equation:
\[ x = \frac{3,000 \times 100}{6} = \frac{300,000}{6} = 50,000 \]

### Step 6: Calculate Total Sales
Now, we can find the total sales by adding the initial Rs 20,000 to the sales above Rs 20,000:
\[ \text{Total Sales} = 20,000 + x = 20,000 + 50,000 = 70,000 \]

### Final Answer
The total sales of the company is Rs 70,000.

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