A shoe manufacturing company offers 3 types of discount schemes to its customers: (i) 20% and 12% (ii) 25% and 5% (iii) 30% and 3% at different stages of sales. Find the best scheme for the customer.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Only Scheme (iii)
Calculations:
For scheme I : Total discount = 20 + 12 - ((20 × 12)/100)
⇒ 32 - 2.4 = 29.6%
For scheme II : Total discount = 25 + 5 - ((25 × 5)/100)
⇒ 30 - 1.25 = 28.75%
For scheme III : Total discount = 30 + 3 - (30 × 3)/100
⇒ 33 - 0.9 = 32.1%
Hence, for scheme III, the discount percent is the highest.
Therefore, scheme III is the best scheme for customer.