Shyam purchased a packet of 16 pens and got 4 pens free with it. He marked the price 20% more than the CP. If he did not allow any discount and sold all the 20 pens at this price, then what was his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 50%.
Let the cost price of 16 penand 4 free pen be 100x.
Discount % = (Free pen/Total pen) × 100
⇒ 4 × 100/20 = 20%
Now, CP = 100x × 80/100 = 80x
MP = 120% of 100x
⇒ 120 × 100x/100 = 120x
When no discount is given, MP = SP = 120x
Now profit percentage = [(120x - 80x)/80x] × 100
⇒ 40x/80x × 100 = 50%