Multiple choice

Arjun marks his handicraft products in advance at 76 percent more than the cost price, but he allows 14 articles to the dozen and also 16 percent discount for customers paying through Paytm. What rate of profit on his outlay does he obtain from a customer who pays through Paytm?

  1. 25%

  2. 32%

  3. 26.72%

  4. 24.48%

  5. 28%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Arjun marks up by 76%. He gives 14 articles for the price of 12 (a discount of 2/14 = 1/7). He also gives a 16% discount. Calculate the effective multiplier: 1.76 * (12/14) * 0.84 = 1.76 * 0.857 * 0.84 = 1.2672. This represents a 26.72% profit.

AI explanation

Assume the cost price of 14 articles is Rs. 14, so the marked price for 14 articles at a 76% markup is Rs. 24.64. Since the customer pays for 12 articles but receives 14 at a 16% discount, the selling price is 12 multiplied by 24.64, divided by 14, and then multiplied by 0.84, which equals Rs. 17.7408. The profit percentage is calculated as (17.7408 minus 14) divided by 14, then multiplied by 100, giving a profit of 26.72%.

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