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Question : The cost price of an article is Rs. 1200. On buying four such articles, the customer gets one for free. If the selling price of each article is Rs. 1800, determine the net percentage profit earned by the shopkeeper on selling four articles.

Option 1: 12%

Option 2: 20%

Option 3: 18%

Option 4: 15%


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: 20%


Solution : The cost price of each article is Rs. 1200.
Since one is given for free on buying four.
The cost price for five articles = Rs. 1200 × 5 = Rs. 6000
However, the shopkeeper sells four articles for Rs. 1800 each.
The total selling price = Rs. 1800 × 4 = Rs. 7200
The profit made by the shopkeeper = Rs. 7200 – Rs. 6000 = Rs. 1200
The profit percentage = $\frac{\text{Profit}}{\text{Cost price}}$ × 100
= $\frac{\text{1200}}{\text{6000}}$ × 100
= 20%
Hence, the correct answer is 20%.

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