The cost price of an article is ₹1,200. On buying four such articles, the customer gets one for free. If the selling price of each article is ₹1,800, then determine the net percentage profit earned by the shop keeper on selling four articles.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 20%
Given that
CP = 1200
SP = 1800
profit % = [1800- 1200 /1200] *100 = 50% profit
Customers get 1 free on buying four articles
Shopkeeper give = (1/5)*100 = 20% discount
Hence, net profit % of shopkeeper = 50 - 20 - 50 * 20/100 = 30 - 10 = 20% profit