Question

The cost price of an article is Rs. 1,200. On buying four such articles, the customer gets one for free. If the selling price of each article is Rs. 1,800, then determine the net percentage profit earned by the shop keeper on selling four articles?

• A. 12%
• B. 20 %
• C. 18%
• D. 15%

Answer 1

Answer:

B. 20 %

C.P. of 1 article = Rs. 1200 S.P. of 1 article = Rs. 1800 on buying 4 articles 1 article is free for the customer C.P. of 5 articles = 1200 × 5 = Rs. 6,000 S.P. of 4 articles = 1800 × 4 = Rs. 7200 Profit = S.P. - C.P. = 7200 - 6000 = Rs. 1200 Profit% = [1200/6000] × 100 = 20%