Multiple choice

A manufacturer marks his goods at 40% above the cost price. He allows a discount of 10% for cash customers and 5% to credit customers. $\displaystyle \frac{3}{5}$ of the goods are sold for cash and the rest on credit. What is the percentage of profit when all the goods are sold and amount realised ?

  1. 30.0%

  2. 28.8%

  3. 27.2%

  4. 25.5%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100. Marked Price = 140. Cash sales (3/5): 10% discount, SP = 0.9 * 140 = 126. Credit sales (2/5): 5% discount, SP = 0.95 * 140 = 133. Weighted average SP = (3/5)*126 + (2/5)*133 = 75.6 + 53.2 = 128.8. Profit = 28.8%.

AI explanation

Assume the cost price of all goods is Rs.100, making the marked price Rs.140. The selling price for the cash portion is 0.9 multiplied by 140 and then by 3/5, which equals Rs.75.6. The selling price for the credit portion is 0.95 multiplied by 140 and then by 2/5, which equals Rs.53.2. The total selling price is 75.6 plus 53.2, equaling Rs.128.8 against the Rs.100 cost, resulting in a profit percentage of 28.8%.

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