A software company developed 800 licenses for a new application at a total cost of ₹4,000,000. They provided 50 licenses free to their top beta testers. For the remaining licenses, they offered a 15% discount on the market price of ₹6000 per license. Additionally, they gave 1 license free for every 9 licenses bought. If all 800 licenses were distributed, what is the company's overall gain or loss percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 13.94% loss.
Total licenses = 800
Free to testers = 50
Remaining = 750
Market price = ₹6000
After 15% discount
⇒ SP = 6000 × = ₹5100
Offer: buy 9, get 1 free
⇒ 10 licenses for the price of 9
So effective SP per license = 5100 × = ₹4590
Total revenue = 750 × 4590 = ₹3442500
Total cost = ₹4000000
Loss = 4000000 − 3442500 = ₹557500
Loss % = × 100 = 13.94% loss