A bakery produced 5000 cakes at a total cost of ₹250,000. They gave away 500 cakes for a promotional event. For the remaining cakes, they offered a 20% discount on the market price of ₹75 per cake. Additionally, they gave one cake free with every 9 cakes bought. If all 5000 cakes were distributed, what is their overall gain or loss percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 2.8% loss.
Total cakes = 5000
Free given = 500
⇒ remaining = 4500
Market price = ₹75
After 20% discount
⇒ SP = 75 × = ₹60
Offer: buy 9, get 1 free
⇒ effective SP per cake = 60 × = ₹54
Total revenue = 4500 × 54 = ₹243000
Total cost = ₹250000
Loss = 250000 − 243000 = ₹7000
Loss % = × 100 = 2.8% loss