A bookseller purchases 5 novels at the marked price of 4 novels from a distributor. If he then sells these novels to customers, offering a discount of 5% on the marked price, what is his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 18.75%.
Let the marked price of 1 novel = 1
Cost to bookseller = MP of 4 novels = 4, but he gets 5 novels
So, cost per novel = 4/5 = 0.8
SP per novel = 0.95
Profit per novel = 0.95 - 0.8 = 0.15
Profit percentage = 0.15/0.8 × 100 = 18.75%