Volume Discount Pricing Calculation
This problem involves calculating the total cost of purchasing 120 units of an item, considering a tiered wholesale pricing structure based on the quantity purchased.
Understanding the Price Tiers
- For quantities 0 to 19 units, the price is $C_0$ per unit.
- For quantities 20 to 29 units, the unit price decreases by 10%, becoming $C_0 \times (1 - 0.10) = 0.9 C_0$.
- For quantities 30 or more units, the unit price decreases by an additional 10% (relative to the previous tier's price), becoming $0.9 C_0 \times (1 - 0.10) = 0.81 C_0$.
Determining the Applicable Unit Price
A total of 120 units are purchased. This quantity falls into the highest discount tier ("30 or more units"). Therefore, the **volume discount** applies to the entire purchase, and the price per unit is $0.81 C_0$.
Calculating the Total Wholesale Price
The total price is calculated by multiplying the total number of units by the applicable unit price:
Total Price = (Number of Units) $\times$ (Unit Price)
Total Price = $120 \times (0.81 C_0)$
Total Price = $97.2 C_0$
Conclusion
The calculated total price is approximately $97.2 C_0$. Comparing this to the given options, the closest value is $97 C_0$.
Important Questions from Profit & Loss (Notes)
- A person incurs a loss of 10% by selling a watch for Rs. 450. At what price should the watch be sold to earn 10% profit?
- A shopkeeper bought an item for ₹7825 and marked it at 30% higher than the cost price. If he sells the item by allowing 20% discount, then his profit percentage will be :
- A bought an article at a certain price and sold it at 10% profit. B bought the same article at a price 10% lesser than A and sold it at ₹18 lesser than A. B's gain percentage in this deal is 20%. At what price B bought the article?
- A dealer buys two articles X and Y for ₹500 each. He marks each of them at the same price. He sells X by giving two successive discounts of 50% and 28% and still earns ₹958 as profit. If he sells Y at a single discount of 77%, then what is the profit percentage on Y?
- A shopkeeper earned a profit (in ₹) by selling an item, which is three times the discount offered (in ₹). If the discount offered is 6.25%, what is his profit percentage ?
