The following question has two statements. Study the question and the statements and decide which of the statement(s) is necessary to answer the question. A retailer wants to earn profit by selling sugar to his customer. He analyzed various methods as per follows. Which of the following would maximize his profit? I) Sell sugar at 20% profit. II) Use faulty weight which measures 800 gm instead of 1000 gm III) Mix 10% impurities in sugar and selling it at cost price. IV) Increase the price by 20% and reduce weight by 20% Correct Answer IV Consider CP/1000 gm = Rs. 100 Profit % in case I = 20% Considering case II, CP of 800 gm sugar = 800/1000 × 100 = Rs. 80 ⇒ Profit % in case II = (100 - 80)/80 × 100 = 25% Considering case III, If he adds 10% impurities in sugar, then his CP for 1 kg sugar = 1000/1100 × 100 = Rs. 90.9 ⇒ Profit % in case III = (100 - 90.9)/90.9 × 100 = 10.01% Considering case IV, If he reduces weight by 20% and increase price by 20%, Cost price of 800 gm = 800/1000 × 100 = Rs. 80 Selling price = 1.2 × 100 = Rs. 120 ⇒ Profit % in case IV = (120 - 80)/80 × 100 = 50% ∴ Profit is maximum in case IV