Question

A stockist wants to make some profit by selling sugar. He contemplates about various methods .
Which of the following would maximise his profit?
I. Sell sugar at 10% profit.
II. Use 900 g of weight instead of 1 kg.
III. Mix 10% impurities in sugar and selling sugar at cost price.
IV. Increase the price by 5% and reduce weights by 5%.
a. I or III
b. II
c. II, III and IV
d. Profits are same

Answer 1

The first one a. I or ii

Answer 2

Answer:

the method which would maximize his profit will be Method-II i.e. option (b.) II

Step-by-step explanation:

Let the cost price of sugar is 100 Rs and he will sell 1 kg normally.

Method-I

profit = 10 %

Method-II

0.9 kg sugar sold at Rs 100

=> 1 kg of sugar will be sold at = 100/0.9 = 111.11

=> % profit = 111.11 - 100 = 11.11%

Method-III

By mixing 10% impurity,

cost price of 1000 g of sugar = 100/1100  x  1000

= 90.9

=> profit = 100 - 90.9 = 9.1

=> % profit = 9.1/90.9  x 100 = 10.01

Method-IV

Increases price = 100 + 5 = 105

Reduced weight = 950 gm

=> 950 gms of sugar is sold at Rs 105

=> 1000 gms of sugar will be sold at = 105/950  x  1000

= 110.52

=> % profit = 10.52

Hence the method which would maximize his profit will be  option (b.) II