A dealer buys 50 chairs for Rs.50,000 but 20 of them are damaged. He decides to sell each damaged one one at 50% of the price of the normal one . What should this price be in order that he may make a profit of 25% on the whole transaction?

So, cost of each chair = $\frac{50,000}{50}$ = Rs.1000

Number of chairs damaged = 20

So, cost price of damaged chairs = $20\times 1000$ = Rs.20,000

Selling price of each damaged chair = 50% of 1000 = Rs.500

So, the selling price of 20 damaged chair = $20\times 500$ = Rs.10,000

Now to make a profit of 25%

Selling price = $50,000+50,000\times \frac{25}{100}=50,000+12,500$ = Rs.62,500

And we have the selling price of 20 damaged chairs = Rs.10,000

So, the selling price of 30 chairs = Rs.62,500 - Rs.10,000 = Rs.52,500

Then, selling price of each chair = $\frac{52,500}{30}$ = Rs.1750

So, to make a profit of 25%, the selling price of each of remaining 30 chairs should be Rs.1750

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