Question

A merchant wants to make profit by selling food grains. Which of the following will maximize his profit?

• A. Sell product at 30% profit
• B. Increase the price by 15% over the cost price and reduce weight by 15%
• C. Use 700 gm of weight instead of 1 kg.
• D. Mix 30% impurities in grains and sell it at cost price

Answer 1

The Correct Option is C

To determine which option maximizes the merchant's profit, we need to analyze each scenario based on how it affects the effective selling price per unit weight in comparison to the original cost price (CP). The overall profit is the difference between the selling price (SP) and the cost price per appropriate weight.

• Option 1: Sell product at 30% profit.
  The selling price will be 130% of the cost price. If CP = 100, then SP = 100 + 30% of 100 = 130.
• Option 2: Increase the price by 15% over the cost price and reduce weight by 15%.
  The new SP = 115% of CP, and if weight reduced to 85% of 1 kg, then effective SP per 1 kg = (115% * 100/85%) = approximately 135.3.
• Option 3: Use 700 gm of weight instead of 1 kg.
  If CP is for 1 kg, then SP per 700 gm = CP. To sell 1 kg at this rate, the effective SP becomes (1000/700) * CP ≈ 142.86% of CP
• Option 4: Mix 30% impurities and sell at CP.
  The SP remains CP; however, due to 30% of impurities, effective SP per genuine 1 kg grain is 100% / 70% ≈ 142.86% of CP.

Analysis shows that both options 3 and 4 can lead to an approximate effective profit of 42.86% of the cost price. However, mixing impurities may involve other ethical considerations or legal restrictions.
Hence, the most straightforward and practical solution is:

Use 700 gm of weight instead of 1 kg.