A retailer bought 20 kg tea at a discount of 10%.

Ques - A retailer bought 20 kg tea at a discount of 10%. Besides 1 kg tea was freely offered to him by the wholesaler at the purchase of 20 kg tea. Now he sells all the tea at the marked price to a customer. What is profit percentage of retailer?

(a) 30%

(b) 12%

(c) 16.66% 

(d) None of these

Solution - 

Let,

The M.P. of 1 kg tea = Rs.1

A retailer bought 20 kg tea at a discount of 10%.

C.P. of 20 kg tea = 20 × 0.9

= Rs.18

1 kg tea was freely offered to him by the wholesaler at the purchase of 20 kg tea.

Now,

C.P. of 21 kg tea = Rs. 18

S.P. of 21 kg tea = 21 × Rs.1

= Rs. 21

Profit of retailer = S.P. - C.P.

= 21 - 18

= 3

Profit percentage of retailer = (Profit / C.P.) × 100

= (3 / 18) × 100

= 16.66%

Hence,

The correct answer is option (c) 16.66%.

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