Multiple choice

A stationery seller purchases 240 pencils for Rs. 2000 and fixes marked price of each pencil at Rs. 12.00. He provides 2 pencils free for 8 pencils and allows a discount of 5%. What is the minimum possible profit?

  1. Rs. 304

  2. Rs. 188.80

  3. Rs. 340

  4. Rs. 881.80

  5. Rs. 118.80
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The seller offers 2 free pencils for every 8 purchased, meaning customers get 10 pencils for the price of 8. For 240 pencils, there are 24 such groups, resulting in 24 * 8 = 192 paid pencils. At a 5% discount on the Rs. 12 marked price, each paid pencil sells for Rs. 11.40, giving a total revenue of 192 * 11.40 = Rs. 2188.80 and a profit of Rs. 188.80.

AI explanation

The shopkeeper effectively sells sets of 10 pencils, providing 2 free with every 8 purchased, meaning for every 10 pencils in stock, 8 are sold. For 240 pencils, he forms 24 sets, selling 8 per set to make 192 sold pencils. Applying a 5% discount to the marked price of 12 rupees gives a selling price of 11.40 rupees per pencil, and multiplying by 192 yields total revenue of 2188.80 rupees. Subtracting the cost price of 2000 rupees gives a profit of 188.80 rupees. The result is Rs. 188.80.

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