A merchant marks his goods up by 50% and offers a discount of 20%. In addition, he gives 1 article free with every 4 articles bought. What is his net profit percentage? MCQ with Answer and Explanation
A merchant marks his goods up by 50% and offers a discount of 20%. In addition, he gives 1 article free with every 4 articles bought. What is his net profit percentage?
A. 4% profit
B. 5% profit
C. No profit no loss
D. 4% loss
Answer: Option D
Solution (By JKSSB Mock Tests)
Let Cost Price of 1 article = 100. Cost Price of 5 articles = 500. Marked Price of 1 article = 150. Customer takes 5 articles but pays for 4. Selling Price of 4 articles = 4 * 150 * 0.80 = 480. Net Selling Price = 480. Net Cost Price = 500. Loss = 20. Loss percentage = (20 / 500) * 100 = 4%.
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