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The Pie chart given below shows the distribution of costs of making a water bottle by a company. If the company earns 20% on cost per bottle and the cost of packaging one bottle is Rs. 0.50, then what is the selling price of one bottle?

The Pie chart given below shows the distribution of costs of making a water bottle by a company. If the company earns 20% on cost per bottle and the cost of packaging one bottle is Rs. 0.50, then what is the selling price of one bottle? Correct Answer Rs. 12

Cost of packaging one bottle = Rs. 0.50

⇒ cost of packaging = 5% × cost price of one bottle

⇒ 0.5 = 5% × cost price of one bottle

⇒ cost price of one bottle = 0.5/5% = Rs. 10

Selling price of one bottle = cost price of one bottle × (100 + profit)%

⇒ selling price of one bottle = 10 × 120% = Rs. 12

∴ Selling price of one bottle is Rs. 12

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