A stockiest wants to make some profit by selling sugar. He contemplates about various methods. Which of the following would maximize his profit? I. Sell sugar at 10% profit. II. Use 900 g of weight instead of 1 kg. III. Mix 10% impurities in sugar and selling sugar at cost price. IV. Increase the price by 5% and reduced weights by 5%.

Answer: Option B

Let the CP of 1 kg of sugar be Rs. 100.
Then, CP of 900g sugar = $$\frac{100\times 900}{1000}$$   = Rs. 90
Hence, profit % = $$\frac{100-90}{90}\times 100$$     = 11.11%

If he add 10% impurity then his CP for 1 kg = $$\frac{100\times 1000}{1100}$$   = Rs. 90.9
And % profit = $$\frac{100-90.9}{90.9}\times 100$$     = 10.01%

If he reduces weight by 5% Then, cost price of 950 g = $$\frac{100\times 950}{1000}$$   = Rs 95 and SP = 105;
% profit = $$\frac{105-95}{95}\times 100$$     = 10.25%