Profit and Loss – Targeting 50% overall profit with one sale known: A mechanic buys 4 old cars for ₹ 1,00,000 total and spends another ₹ 2,00,000 on maintenance. If he has already sold one car for ₹ 1.20 lakh, what should be the average selling price of the remaining three cars to achieve an overall 50% profit?

Introduction / Context:We compute total investment, then the total revenue required to realize a 50% profit overall. One sale value is known, so we determine the revenue still needed from the remaining cars and convert it to an average per car.

Given Data / Assumptions:

• Purchase of 4 cars = ₹ 1,00,000
• Repair/maintenance total = ₹ 2,00,000
• Total cost = ₹ 3,00,000
• Sale of one car = ₹ 1.20 lakh
• Target profit = 50% overall

Concept / Approach:Required total revenue = 1.50 * Total cost. Subtract the known sale to find the amount to be raised from the remaining three cars. Average selling price is that amount divided by 3.

Step-by-Step Solution:Total cost = ₹ 3.00 lakhRequired total revenue = 1.50 * 3.00 = ₹ 4.50 lakhAmount remaining to collect = 4.50 − 1.20 = ₹ 3.30 lakhAverage SP for remaining three = 3.30 / 3 = ₹ 1.10 lakh

Verification / Alternative check:If each of the remaining three sells at ₹ 1.10 lakh, total revenue becomes ₹ 1.20 + ₹ 3.30 = ₹ 4.50 lakh, exactly 50% above the ₹ 3.00 lakh cost.

Why Other Options Are Wrong:1.50 and 1.65 lakh exceed the target average; 1.20 lakh would overshoot the total; 1.40 lakh is unnecessary to reach 50%.

Common Pitfalls:Forgetting to include maintenance in total cost or misinterpreting “overall 50% profit.”

Final Answer:1.10 lakh