A retailer offers the following discount schemes for buyers on an article. Which scheme will be least beneficial to customer?
(i) A disount of 30%
(ii) A discount of 22% followed by a discount of 8%.
(iii) Successive discoubnts of 25% and 5%
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. scheme (ii).
Let the MP of the article be 100.
(i) SP = 100 × 70/100 = 70
(ii) SP = 100 × 78/100 = 78
Again, final SP = 78 × 92/100 = 71.76
(iii) SP = 100 × 75/100 × 95/100
⇒ 75 × 95/100 = 71.25
Hence the required answer is scheme (ii).