CAT 1996 — QA Question 14
Direction: Answer the questions based on the following information.
A watch dealer incurs an expense of Rs. 150 for producing every watch. He also incurs an additional expenditure of Rs. 30,000, which is independent of the number of watches produced. If he is able to sell a watch during the season, he sells it for Rs. 250. If he fails to do so, he has to sell each watch for Rs. 100.
Once I had been to the post office to buy five-rupee, two-rupee and one-rupee stamps. I paid the clerk Rs. 20, and since he had no change, he gave me three more one-rupee stamps. If the number of stamps of each type that I had ordered initially was more than one, what was the total number of stamps that I bought?
Answer & solution
10
- B
9
- C
12
- D
8
Since I paid Rs. 20 and because of lack of change, the clerk gave me Rs. 3 worth of stamps, it can be concluded that the total value of the stamp that I wanted to buy is Rs. 17. Since I ordered initially a minimum of 2 stamps of each denominations, if I buy exactly 2 stamps each, my total value is 2(5 + 2 + 1) = Rs. 16. The only way in which I make it Rs. 17 is buying one more stamp of Re 1. Hence, the total number of stamps that I ordered = (2 + 2 + 3) = 7. In addition, the clerk gave me 3 more.
Hence, the total number of stamps that I bought = (7 + 3) = 10 (viz. 2 five-rupee, 2 two-rupee and 6 one-rupee stamps).