A salesman offers a discount scheme of 'Buy 25 and get 5 free' on the purchase of notebooks in his shop. He professes that a notebook costs him ₹10, but in reality, it costs him ₹5. Find the difference between his profit percentage and scheme discount.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 50%.
Cost price per notebook = ₹5
Claims cost price = ₹10
Buys 30 notebooks, pays for 25 × ₹10 = ₹250
Actual cost = 30 × ₹5 = ₹150
Profit = 250 − 150 = ₹100
Profit % = (100 / 150) × 100 = 66.67%
Discount % = [(30 × 10) − 250] / (30 × 10) × 100 = (300 − 250) / 300 × 100 = 16.67%
Difference = 66.67% − 16.67% = 50%