Quantitative and Data Interpretation & Sufficiency Section

 

For the following questions in this section, correct answers carry 1 mark each.

 

95. A merchant wants to make profit by selling food grains. Which of the following would maximize his profit?

      I.    Sell product at 30% profit

II.   Increase the price by 15% over the cost price and reduce weight by 15%

III.  Use 700 gm of weight instead of 1 kg.

IV.  Mix 30% impurities in grains and sell it at cost price

 

      (a)  III                         (b)  II and I                        (c)  II                          (d)  All give the same profit

 

Solution:

Let the cost price of 1 kg be C and the selling price be S and the percentage profit be P.

The cost price, selling price and the profit fraction for the 4 options are tabulated below.

 

Option

C

S

P

I

C

1.3 C

0.30

II

0.85 C

1.15 C

III

0.7 C

C

IV

C

1.3 C

0.30

 

      We see that P is maximum for option III.                                                                                                           Choice (a)