A sweet shop owner buys 12 boxes of sweets for the price of 10 boxes from a wholesaler.
If he sells each box at a 3% discount on its marked price, what is his profit percentage?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 16.4%.
Let the cost price and marked price of the box be 1.
Now, CP of 12 boxes bought = CP of 10 boxes = 10
Also, discount = 3%
SP = 1(1 - 0.03)
⇒ SP = 0.97
⇒ SP of 12 boxes = 12 × 0.97 = 11.64
Now, profit = SP - CP
⇒ 11.64 - 10 = 1.64
Required percentage = (1.64/10) × 100 = 16.4%