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A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:
- a)11.76%
- b)12.5%
- c)13.8%
- d)Cannot be determined
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
A shop WSS sells two products - product A and product B. Due to a fest...
Solution: Let Rs. a be the selling price of A and Rs. b be the selling price of B.
Hence, the initial selling price of A and B together is Rs. a + b.
Now, he increases the selling price of product A by 50% and makes product B free along with product A.
So, the new selling price of A and B = Rs. 1.5a For this selling price, he makes a 20% profit on the selling price i.e. he makes a profit of 1.5a/5 i.e. Rs. 0.3a So, cost price of A and B together = 1.5a - 0.3a i.e. Rs. 1.2a
Hence, the initial selling price of A and B together is Rs. a + b.
Now, he increases the selling price of product A by 50% and makes product B free along with product A.
So, the new selling price of A and B = Rs. 1.5a For this selling price, he makes a 20% profit on the selling price i.e. he makes a profit of 1.5a/5 i.e. Rs. 0.3a So, cost price of A and B together = 1.5a - 0.3a i.e. Rs. 1.2a
Now, the current profit of Rs. 0.3a is 60% of the initial profit.
Hence, initial profit = 0.3a/0.6 = Rs. a/2 But his initial profit = Rs. (a + b) - 1.2a Hence, a + b - 1.2a = a/2 Hence, b = 0.7a Hence, the initial selling price of both products = a + b = a + 0.7a = 1.7 a
Hence, total discount offered by him,
Hence, option 1.
Hence, initial profit = 0.3a/0.6 = Rs. a/2 But his initial profit = Rs. (a + b) - 1.2a Hence, a + b - 1.2a = a/2 Hence, b = 0.7a Hence, the initial selling price of both products = a + b = a + 0.7a = 1.7 a
Hence, total discount offered by him,
Hence, option 1.Most Upvoted Answer
A shop WSS sells two products - product A and product B. Due to a fest...
Aims to increase the sales of product A and attract more customers.
However, this strategy may have some consequences. The increase in the selling price of product A may make it less affordable for some customers, and they may choose to buy other products instead. Additionally, offering product B for free may increase the demand for it, which may result in a shortage of stock.
Furthermore, the shop may incur additional costs by offering product B for free, such as the cost of producing and storing the product. If the demand for product A does not increase significantly, the shop may not be able to recover these costs.
Therefore, the shop should carefully evaluate the potential benefits and drawbacks of this strategy before implementing it. They should also consider alternative strategies, such as offering discounts or bundles that do not involve giving away products for free.
However, this strategy may have some consequences. The increase in the selling price of product A may make it less affordable for some customers, and they may choose to buy other products instead. Additionally, offering product B for free may increase the demand for it, which may result in a shortage of stock.
Furthermore, the shop may incur additional costs by offering product B for free, such as the cost of producing and storing the product. If the demand for product A does not increase significantly, the shop may not be able to recover these costs.
Therefore, the shop should carefully evaluate the potential benefits and drawbacks of this strategy before implementing it. They should also consider alternative strategies, such as offering discounts or bundles that do not involve giving away products for free.
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A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer?
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A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer?.
A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer?.
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A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of A shop WSS sells two products - product A and product B. Due to a festive offer, the shop increases the selling price of product A by 50% and makes product B free along with product A. By doing this, it’s profit decreases by 40%. If the shopkeeper still earns 20% profit on the selling price, then the total percentage discount offered by him is:a)11.76%b)12.5% c)13.8%d)Cannot be determinedCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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