Question

Answer the following questions on the basis of the data given below.

Jamshedpur Electronics sells Television sets and IPods through three retail outlets located in Bistupur, Sakchi and Kadma. The table below gives the sales figures (in Rupees thousand) of these two products for the months of January, February and March.

Note: Units ordered = Units sold + Ending inventory - Beginning inventory. All other things remain constant, and all Rupee figures are in thousands.

What was the total value of surcharge paid, at the rate of 14% of sales value, by Jamshedpur Electronics over the period of three months?

• A. 18522
• B. 18548
• C. 18425
• D. 18485

Hint:

Add the Television and IPods sales for all three months first, then apply the 14% surcharge to that combined total.

Answer 1

The Correct Option is A

Instead of adding the two product lines together first and then taking 14% of the combined figure, we can apply the 14% rate to each product separately and add the two surcharge amounts at the end. Both routes must agree since percentage of a sum equals the sum of the percentages.

1. Television surcharge: total Television sales over the three months are $31500$ (Rupees thousand), found by summing all nine monthly-area entries for Television in the table. Surcharge on this = $0.14 \times 31500 = 4410$.
2. IPods surcharge: total IPods sales over the three months are $100800$ (Rupees thousand). Surcharge on this = $0.14 \times 100800 = 14112$.
3. Combine the two surcharges: total surcharge = $4410 + 14112 = 18522$.

This matches what we would get by adding the sales first and then applying 14%, since $0.14 \times (31500 + 100800) = 0.14 \times 31500 + 0.14 \times 100800$, a basic property of how percentages distribute over addition.

Let's summarize:

• Television surcharge = 4410 and IPods surcharge = 14112.
• Adding the two separately gives the same answer as taking 14% of the combined sales figure.

So the total surcharge paid over the three months is Rupees 18522 thousand.