Multiple choice

A shopkeeper marks the price of his wares 30% above the cost price. He sells his wares at 20% discount for cash and at 10% discount on credit. This way, he sells 70% of his wares for cash and the remaining on credit. What is his profit percent in the entire deal?

  1. 4.2%

  2. 8.4%

  3. 7.9%

  4. 7.6%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100, MP = 130. Cash sales (70%): SP = 130 * 0.8 = 104. Credit sales (30%): SP = 130 * 0.9 = 117. Weighted average SP = (0.7 * 104) + (0.3 * 117) = 72.8 + 35.1 = 107.9. Profit = 7.9%.

AI explanation

Assume the total cost price of the wares is Rs. 100, which means the total marked price is 30% higher, equaling Rs. 130. For the 70% sold for cash, the revenue is 70 times 1.30 times 0.80, which gives Rs. 72.80. For the 30% sold on credit, the revenue is 30 times 1.30 times 0.90, which gives Rs. 35.10. The total revenue is 72.80 plus 35.10, equaling Rs. 107.90, so against the Rs. 100 cost price, the profit percentage is 7.9%.

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