A shopkeeper sells two items, A and B, Item B's cost price is twice as that of item A. The shopkeeper sells item A at 10% profit and item B at 20% profit. Which one of the following is the value of net profit?

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UPSC CAPF AC 2024 Official Paper-I (Held on 4 August 2024)
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  1. 15%
  2. 13.33%
  3. 18%
  4. 16.66%

Answer (Detailed Solution Below)

Option 4 : 16.66%
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The Correct answer is Option 4. 

Key Points

⇒ Let the cost price of item A be CPA = x.

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⇒  Then, the cost price of item B will be: CPB = 2x

Selling price of item A:

⇒  The shopkeeper sells item A at a 10% profit: SPA = CPA + 10% of CPA = x + 0.1x = 1.1x

Selling price of item B:

⇒  The shopkeeper sells item B at a 20% profit: SPB = CPB + 20% of CPB = 2x + 0.2(2x) = 2x + 0.4x = 2.4x

⇒  Total CP = CPA + CPB = x + 2x = 3x

⇒  Total SP = SPA + SPB = 1.1x + 2.4x = 3.5x

⇒  Net Profit = Total SP - Total CP = 3.5x - 3x = 0.5x

⇒  Net Profit Percentage = (Net Profit / Total CP) × 100 = (0.5x / 3x) × 100 = (0.5 / 3) × 100 = (50 / 3) ≈ 16.67%

​Thus, the value of the net profit percentage is:4) 16.66%

 

 

 

 

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