Multiple choice

A retailer implements a dynamic pricing strategy to sell off his 800 identical caps. The initial selling price is ₹50 per cap, while the cost price is ₹30 per cap. According to the strategy, the selling price decreases by 10% for all the caps beyond the first 500 caps for a customer who buys all 800 caps. If the retailer sells all the caps to a customer, calculate the overall profit.

  1. ₹15,370

  2. ₹12,400

  3. ₹14,500

  4. ₹15,620

  5. ₹17,540
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The first 500 caps are sold at Rs 50 (profit Rs 20 each), totaling 500 * 20 = 10,000. The remaining 300 caps are sold at a 10% discount on the price, which is 50 * 0.9 = 45. The profit on these is (45 - 30) = 15 each, totaling 300 * 15 = 4,500. Total profit is 10,000 + 4,500 = 14,500.

AI explanation

For the first 500 caps, the selling price is 50, giving a profit of 20 per cap, so the total profit is 500 times 20, which is 10000. For the remaining 300 caps, the price drops by 10% to 45, giving a profit of 15 per cap, so the profit is 300 times 15, which is 4500. Adding these two profits together, 10000 plus 4500 equals 14500.

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