A retailer buys 220 chocolates from a wholesaler for the marked price of 198 items. He then sells each chocolate at a discount of 3.7%. What is his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 1 i.e. 7%.
CP of 220 chocolates = MP of 198 chocolates
Let the MP of one chocolate = 1
Total CP = 198 × 1 = 198
CP per chocolate = 198/220 = 0.9
SP per chocolate = (96.3/100) × 1 = 0.963
Profit per chocolate = 0.963 - 0.9 = 0.063
Profit Percentage = (0.063/0.9) × 100 = 7%