Landed cost with freight, octroi, and handling → target 40% margin Kamlesh purchases 120 reams of paper at ₹100 per ream, pays ₹480 transport, octroi at ₹0.50 per ream, and ₹60 in coolie charges. At what selling price per ream should he sell to gain 40% overall?

Introduction / Context:
Landed cost aggregates all acquisition expenses before pricing for profit: item price, transport, statutory duties, and handling. Once the total landed cost is known, apply the target margin to obtain the total revenue and divide by total units to get the per-unit selling price.

Given Data / Assumptions:

• Basic purchase: 120 * ₹100 = ₹12,000.
• Transport: ₹480.
• Octroi: ₹0.50 per ream * 120 = ₹60.
• Coolie/handling: ₹60.
• Target gain: 40% on total cost.

Concept / Approach:
Total landed cost = sum of all cost components. Target revenue = landed cost * 1.40. Selling price per ream = Target revenue / 120.

Step-by-Step Solution:
Landed cost = 12,000 + 480 + 60 + 60 = ₹12,600.Target revenue = 12,600 * 1.40 = ₹17,640.SP per ream = 17,640 / 120 = ₹147.

Verification / Alternative check:
Per-ream landed cost = 12,600 / 120 = ₹105. A 40% markup gives 105 * 1.40 = ₹147, confirming the result.

Why Other Options Are Wrong:
₹138 and ₹150 do not correspond to a 40% margin on the computed landed cost.₹155 and ₹165 overshoot the required profit percentage.

Common Pitfalls:
Ignoring small per-unit duties like octroi, or applying 40% to the basic purchase cost instead of the full landed cost.

Final Answer:
₹ 147