A vendor purchased 720 lemons at ₹ 120 per hundred. 10% of the lemons were found rotten which he sold at ₹ 50 per hundred. If he sells the remaining lemons at ₹ 125 per hundred, then his profit will be 16%.
Total CP = 720 × 120 / 100 = 864. Rotten = 72 sold at 50/100 = 36. SP of 648 lemons = 648 × 125 / 100 = 810. Total SP = 846. Loss = 18. Hence not 16% profit. False.