Question

A merchant wants to make profit by selling food grains. Which of the following will maximize his profit?
I. Sell product at 30% profit
II. Increase the price by 15% over the cost price and reduce weight by 15%
III. Use 700 gm of weight instead of 1 kg
IV. Mix 30% impurities in grains and sell it at cost price

• A. III
• B. II and I
• C. II
• D. All give the same profit

Hint:

Compute the actual profit percent on the true cost delivered for each plan, not on the labeled weight or price.

Answer 1

The Correct Option is A

Step 1: Base CP of 1kg = Rs 100.
Plan I: Profit=30%.
Plan II: SP=115, real cost=0.85x100=85. Profit%=(115-85)/85x100=35.29%.
Plan III: SP=100 for 700gm costing 70. Profit%=(100-70)/70x100=42.86%.
Plan IV: Sell at cost price = 0% profit.

Final Answer: Plan III gives highest profit (42.86%), option (1).