A shopkeeper offers the following four schemes:
A) Two successive discounts of 39% and 8%
B) Buy 8, get 4 free
C) A single discount of 16%
D) Two successive discounts of 38% and 34%
Which scheme is best for the shopkeeper?
- AOption (a)
A
- BOption (b)
D
- COption (c)
C
- DOption (d)
B
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Correct answer
C
Why this answer is correct
Shortcut Trick
The best scheme for the shopkeeper is the one that offers the minimum discount to the customer.
Compare total discounts: A (39+8−3.12=43.88%), B (4/12 × 100=33.33%), C (16%), D (38+34−12.92=59.08%).
Comparing the values 43.88%, 33.33%, 16%, and 59.08%, the minimum discount is 16%.
Therefore, Scheme C is the most profitable for the shopkeeper.
∴ The correct answer is C.
Alternate Method
Formulas: Successive Discount = a + b − (a × b) ÷ 100 | Buy x get y free Discount% = [y ÷ (x + y)] × 100
⇒ Scheme A: 39 + 8 − (39 × 8)/100 = 47 − 3.12 = 43.88%
⇒ Scheme B: (4 ÷ 12) × 100 = 1/3 × 100 = 33.33%
⇒ Scheme C: Single discount = 16%
⇒ Scheme D: 38 + 34 − (38 × 34)/100 = 72 − 12.92 = 59.08%
⇒ For a shopkeeper, the scheme with the lowest discount percentage results in the highest Selling Price (SP) and thus the most profit.
∴ The correct answer is C.
Additional Information
Customer vs Shopkeeper Preference
A customer always looks for the Maximum Discount (Scheme D), while the shopkeeper looks for the Minimum Discount (Scheme C).
Buy x Get y Free Concept
In 'Buy x Get y Free', the total items given to the customer is (x + y). The discount is calculated on the total items: Discount % = [Free Items ÷ Total Items] × 100.