Multiple choice

A shopkeeper marked the cold drink bottles 40% above the cost price. If he offered ‘Buy 3 get 1 free’ scheme on these cold drink bottles then how much percentage profit will be earned by selling these bottles on the marked price?

  1. 8%

  2. 4%

  3. 5%

  4. 6%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Marked price = 140% of cost. 'Buy 3 get 1 free' means selling 4 bottles for price of 3. Revenue = 3 × 1.4 = 4.2 times cost for 4 bottles. Profit = (4.2 - 4)/4 × 100 = 5%.

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