Amal purchases some pens at ₹ each. To sell these, he hires an employee at a fixed wage. He sells of these pens at each. If the remaining pens are sold at each, then he makes a net profit of ₹ , while he makes a net loss of ₹ if the remaining pens are sold at ₹ each. The wage of the employee, in INR, is
Amal purchases some pens at ₹ each. To sell these, he hires an employee at a fixed wage. He sells of these pens at each. If the remaining pens are sold at each, then he makes a net profit of ₹ , while he makes a net loss of ₹ if the remaining pens are sold at ₹ each. The wage of the employee, in INR, is
Entered answer:
Solution
Let us define the variables for this profit-loss problem:
= total number of pens Amal purchased
= fixed wage of the employee (what we need to find)
Cost price per pen = ₹8
Total cost = Cost of pens + Employee wage =
Amal has a specific selling strategy:
First 100 pens: sold at ₹12 each
Remaining pens: sold at different prices in two scenarios
Revenue from first 100 pens = (same in both scenarios)
Remaining pens =
For the first scenario where remaining pens are sold at ₹11 each with net profit ₹300:
Total Revenue =
Using the profit formula Revenue - Total Cost = Profit:
... (Equation 1)
For the second scenario where remaining pens are sold at ₹9 each with net loss ₹300:
Total Revenue =
Using the loss formula Total Cost - Revenue = Loss:
... (Equation 2)
From Equation 1:
From Equation 2:
Subtracting Equation 2 from Equation 1:
Substituting into Equation 2:
This problem demonstrates how profit/loss scenarios create a system of equations. When we have two unknowns and two different outcomes, we can set up equations based on Revenue - Cost = Profit (or Loss) and solve them simultaneously.
Therefore, the wage of the employee is ₹1000.