A stockist wants to make some profit by selling rice. He contemplates about various methods. Which of the following would maximize his profit?
1. Sell rice at 10% profit.
2. Use 900 g of weight instead of 1 kg.
3. Mix 10% impurities in rice and selling rice at cost price.
4. Increase the price by 5% and reduce weights by 5%.
OPtion
1) 1
2) 2
3) 3
4) 4
5) 1 or 2
6) 2 or 3
7) 1 or 3
8) 1 or 4
9) 2 or 4
10) None of these
Solution
We will solve this question by taking all the cases one by one.
In the first case it is given that the profit is 10%.
For second case, let the CP of 1 kg of rice be Rs. 100
Then CP of 900 g of rice= (100/1000 )x 900 = Rs. 90
Hence, profit % in Case II= [{(100-90)/90}x100] = 11.11%
For case III, If he adds 10% impurity then his CP for 1 kg
= {(100/1100) x 100} = Rs. 90.90
Hence, profit % in Case III = [{(100-90.90)/90.90} x 100] = 10.01%
and in the last case, If he reduces weight by 5%
Then cost price of 950 g = {(100/1000) x 950} = Rs. 95 and SP = Rs. 105
Hence, profit % in Case IV = {(105 – 95 )/95} X 100 = 10.52%