Question
A shopkeeper offers the following discount schemes for
buyers in an article: i. Two successive discounts of 15% each ii. A discount of 25% followed by a discount of 5% iii. Two successive discounts of 20% and 10% iv. A discount of 30% Under which scheme will the selling price be maximum?Solution
Let the MP =100 for every plan. Scheme I 
=30-2.25 = 27.75% M.P: S.P =100: 72.25 Scheme II: Effective discount = 25 + 5-(25 x 5)/100 =30-1.25 = 28.75% M.P: S. P= 100: 71.25 Scheme III: Effective discount = 20 + 10-(20 × 10)/100 =30-2=28% M.P: S.P = 100:72 Scheme IV: discount 30% MP: SP=100:70 So, we can see in Scheme I selling price is maximum.
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