Multiple choice

An article was purchased in a fluctuation market on different dates at a unit price of (i) Rs. 11, (ii) Rs. 9, (iii) Rs. 8 and (iv) Rs. 10. It was sold at Rs. 2 above the purchase price. Which article was the most profitable in percentage terms?

  1. (i)

  2. (ii)

  3. (iii)

  4. (iv)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Profit percentage is calculated as (Profit / Cost Price) * 100. Since the profit is a constant Rs. 2 for all, the percentage is (2 / Cost Price) * 100. Therefore, the smallest cost price yields the highest percentage profit. Rs. 8 is the smallest cost price.

AI explanation

To find the highest percentage profit, we calculate the profit percentage for each article using the formula ((Selling Price - Cost Price) / Cost Price) * 100. For a cost price of 8, the profit is 2, yielding a profit percentage of 2/8 * 100 = 25%. This result is higher than the percentage for the items bought at 9, 10, or 11, making the third article the most profitable.

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