Question

A stockist wants to make some profit by selling sugar. He contemplates about various methods. Which of the following would maximise his profit? I. Sell sugar at 10% profit.
II. Use 900 g of weight instead of 1 kg.
III. Mix 10% impurities in sugar and selling sugar at cost price.
IV. Increase the price by 5% and reduce weights by 5%.

• A. I or III
• B. II
• C. II, III and IV
• D. Profits are same

Hint:

Always compare profit percentages directly to choose the maximum gain metho(d)

Answer 1

The Correct Option is C

Using short-cut: I. Profit = 10%. II. Using 900g but charging for 1kg $\Rightarrow$ $\frac{1000 - 900}{900} \times 100 \approx 11.11%$. III. 10% impurities at cost price means selling only 90% sugar for 100% price $\Rightarrow$ $\frac{100 - 90}{90} \times 100 \approx 11.11%$. IV. Price increase 5%, weight decrease 5%: Net $%$ gain $\approx 5 + \frac{5}{95} \times 100 \approx 10.26%$. Thus II and III give highest (~11.11%), but all three II, III, IV>10%. % Quick tip