Math Problem Statement

MBA Nexus - CAT & OMETS 2024, [31-10-2024 08:51] Q7 A shopkeeper marks up the price of an article by 100% and then offers three successive discounts of a%, b% and c%, where a, b and c are positive integers. If a + b + c = 30, then find the maximum profit that he can earn.

MBA Nexus - CAT & OMETS 2024, [31-10-2024 08:52] [ Poll : Ans ]

  • 40%
  • 45.8%
  • 70%
  • 56.4% use assumption method

Solution

To solve the problem, we can break it down step by step.

  1. Initial Price and Markup: Let the cost price (CP) of the article be xx. After marking up by 100%, the marked price (MP) becomes: MP=x+100% of x=2xMP = x + 100\% \text{ of } x = 2x

  2. Discount Calculation: The shopkeeper offers three successive discounts of a%a\%, b%b\%, and c%c\% such that a+b+c=30a + b + c = 30. The selling price (SP) after these discounts can be calculated using the formula for successive discounts: SP=MP×(1a100)×(1b100)×(1c100)SP = MP \times (1 - \frac{a}{100}) \times (1 - \frac{b}{100}) \times (1 - \frac{c}{100})

  3. Profit Calculation: The profit can be calculated as: Profit=SPCPProfit = SP - CP To express it as a percentage of the cost price: Profit%=SPCPCP×100=SPxx×100Profit \% = \frac{SP - CP}{CP} \times 100 = \frac{SP - x}{x} \times 100

  4. Combining the Equations: Substitute the SP: Profit%=(2x×(1a100)×(1b100)×(1c100))xx×100Profit \% = \frac{(2x \times (1 - \frac{a}{100}) \times (1 - \frac{b}{100}) \times (1 - \frac{c}{100})) - x}{x} \times 100 Simplifying this: Profit%=(2×(1a100)×(1b100)×(1c100)1)×100Profit \% = (2 \times (1 - \frac{a}{100}) \times (1 - \frac{b}{100}) \times (1 - \frac{c}{100}) - 1) \times 100

  5. Expressing a,b,ca, b, c: Given a+b+c=30a + b + c = 30, we can try different combinations to maximize the profit.

To maximize profit, the discounts should be structured as follows:

  • a=b=10%a = b = 10\% and c=10%c = 10\% or
  • a=12%,b=12%,c=6%a = 12\%, b = 12\%, c = 6\%

Calculation of Profits for Different Combinations

Let's calculate for a=10,b=10,c=10a = 10, b = 10, c = 10: SP=2x×(10.1)×(10.1)×(10.1)=2x×0.93=2x×0.729=1.458xSP = 2x \times (1 - 0.1) \times (1 - 0.1) \times (1 - 0.1) = 2x \times 0.9^3 = 2x \times 0.729 = 1.458x Thus, Profit=1.458xx=0.458xProfit = 1.458x - x = 0.458x Profit percentage: Profit%=0.458xx×100=45.8%Profit \% = \frac{0.458x}{x} \times 100 = 45.8\%

Conclusion:

Thus, the maximum profit percentage he can earn is 45.8%.

If you have any questions or need further details, let me know! Here are some related questions you might consider:

  1. How does changing the discount percentages affect the overall profit?
  2. What would be the profit percentage if only one discount was applied?
  3. How do successive discounts differ from a single discount?
  4. Can the shopkeeper still profit if the cost price increases?
  5. What is the impact of the initial markup on profit margins?

Tip: Always calculate your selling price after discounts to determine the actual profit before making pricing decisions.

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Math Problem Analysis

Mathematical Concepts

Profit Calculation
Percentage
Discounts

Formulas

MP = CP * (1 + markup_percentage)
SP = MP * (1 - a/100) * (1 - b/100) * (1 - c/100)
Profit % = (SP - CP) / CP * 100

Theorems

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Suitable Grade Level

Grades 9-12