Comprehension Passage
Directions: Ram is a dealer of study materials. His policy is to buy the products at 5% less than MRP. He has different type of customers to whom he sells goods at different price and offers cash discount for quick payment at different rates. Cash discount to wholesaler is provided, if they make payment within a month, and it is provided to retailer, if payment is made within 15 days. Cash discount is given to regular customer only and only if they make cash purchases.
|
Types of Customer |
Selling Price |
Cash Discount |
|
Wholesaler |
MRP |
3% |
|
Retailer |
MRP + 10% |
2% |
|
Daily Customer |
Not fixed |
1% |
Ram has a choice to sell 4 study tables having MRP Rs. 250 each, either to retailer or to daily customer. Finally, it is sold to daily customer at a profit of 15% who made whole payment immediately. While the retailer was ready to make payment of half amount only. What is the amount of profit or loss incurred by Ram due to this decision?
1
Profit - Rs. 7.5
2
Loss - Rs. 7.5
3
Profit - Rs. 10
4
Loss - Rs. 10
5
No profit no loss