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Direction : Read the data carefully and answer the questions.
A company is the producer of bottles and it used to sell bottles through distributor on a condition that on selling the stock of every 50 bottles, he will get Rs. 1000 as commission. The distributor is responsible to sell all those bottles to retailers. If he marks the bottles at the price which is 30% above the production cost (cost price) and allows a discount of Y%. He sells total of ‘X’ bottles which is 40 less than total received stock by him. Total production price of whole stock of bottles received by him to sell to retailers is Rs. 7.8 lakhs. The commission received by distributor is Rs. 7000 and he made a profit of Rs 1.4 lakhs on selling the bottles.
If company added given commission in cost price and he give stock of (X + 450) bottles to another distributor who sold all stock, then find new cost price of one bottle?
2200 Rs.
2020 Rs.
2040 Rs.
2060 Rs.
2080 Rs.
Let’s break this down step by step:
- Distributor gets Rs. 1000 commission for every 50 bottles. He received Rs. 7000, so total bottles = 7000 / 1000 × 50 = 350 bottles.
- He sells X bottles, which is 40 less than received. So, X = 350 – 40 = 310 bottles.
- Total production price for 350 bottles is Rs. 7.8 lakhs (780,000). So, production cost per bottle = 780,000 / 350 = 2,229 Rs.
- Made a profit of 1.4 lakhs on 310 bottles. Profit per bottle = 1,40,000 / 310 ˜ 451.61 Rs.
- The next distributor gets (X+450) = 310 + 450 = 760 bottles if company adds commission into cost.
- Now, new total cost = previous total cost + total commission = 7,80,000 + 7,000 = 7,87,000 Rs.
- So, new cost price per bottle = 7,87,000 / 760 = 1,035.5 Rs. Hold up—this isn’t matching the options. Let’s see if the commission amount should be calculated based on the exact batch size for new distributor:
- (X+450) = 760 bottles; commission batches = 760 / 50 = 15.2 ? So, real commission = 15 × 1,000 = 15,000 Rs.
- New total cost = 7,80,000 + 15,000 = 7,95,000 Rs.
- New cost price per bottle = 7,95,000 / 760 = 1,046 Rs. Still not matching the options.
Actually, based on the more expected calculation style for these questions:
- For (X + 450) = 760 bottles; commission earned = (760 / 50) × 1000 = 15.2 × 1000 = Rs. 15,200
- New total cost = previous cost + Rs. 15,200 = 7,95,200
- New cost per bottle = 7,95,200 / 760 = 1,046 Rs. again.
But none of the options are anywhere near that. Let me do a quick options check:
- 2200
- 2020
- 2040
- 2060
- 2080
Seems the calculation should be:
Maybe the *commission per bottle* is added to the old cost per bottle:
Old cost per bottle (without commission): 7,80,000 / 350 = 2,229 Rs.
Commission per bottle for 350 bottles: 7,000 / 350 = 20 Rs.
So, when company adds commission into cost for new distributor:
New cost per bottle = 2,229 + 20 = 2,249 Rs. (For (X+450) bottles, cost per bottle would be similar as per cost allocation.)
Or, more accurately, total cost (7,80,000 + batch commission for 760 bottles):
- Commission = (760/50) × 1,000 = 15×1,000 = 15,000
- New total cost = 7,80,000 + 15,000 = 7,95,000
- Cost per bottle = 7,95,000 ÷ 760 = 1,046 Rs.
Absolutely, none of the logical breakdowns get us to anything close to 2,020 (or other options). This suggests either the question’s cost value or options are off, or missing a relabeling.
What this really means is: Based strictly on the numbers given, none of the provided options exactly match the logical calculation, but 2020 Rs. (option 2) is not supported by any calculation pathway above. I’d double-check the question details or answer key for a potential mismatch or missing info.
By: Parvesh Mehta ProfileResourcesReport error
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