A merchant wants to make profit by selling food
grains. Which of the following would maximize his profit?

I. Sell product at 30% profit

II. Increase the price by 15% over the cost price and reduce weight by 15%

III. Use 700gm of weight instead of 1 kg

IV. Mix 30% impurities in grains and sell it at cost price

(A) III

(B) II and I

(C) II

Solution follows here:

__Solution:__

Assume cost price to be Rs 100 and weight to be 100gm

__Option I__

__:__

Profit is given as 30% => Profit ratio= 30/100

__Option II :__

Increase price by 15% implies new cost price = 115

Reduce weight by 15% implies new weight = 85

So he sells Rs 85 worth of item for Rs 115

Profit ratio= profit/cost = (115-85)/85 = 30/85

__Option III :__

Using 700gm weight instead of 1kg

So he sells 700 worth of item for 1000

Profit ratio= profit/cost = (1000-700)/700 = 300/700 =
30/70

__Option IV :__Mix 30% impurities

If 30% impurities are mixed to a weight of 100, net
weight becomes 130. At the presumed rate, he sells this at 130, which means he
is selling actual weight of 100gm for Rs 130.

Profit ratio= profit/cost = (130-100)/100 = 30/100

Now compare profit ratios of all the four options
respectively:

30/100 30/85 30/70 30/100

Numerators are same hence value with lowest
denominator is greatest.

Hence option III yields highest profit.
**Answer (A)**
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