The table below shows the partial pricing details for two items, M and N. The ratio of the Cost Price (CP) of M to the CP of N is 3:4. The Marked Price (MP) of M is times its CP. The Marked Price of N is times its CP. Both items are sold at the same discount percentage on their respective Marked Prices.
If the overall profit percentage for the two items combined is exactly 20%, and the profit percentage on item N does not exceed 50%, what is the maximum possible value of ?
B
Step-by-Step Solution
Key idea: This is an observation and maximization question involving ratios and boundary conditions. The trap is ignoring the constraint on the profit percentage of item N.
Step 1: Let CP of M = and CP of N = . Total CP = .
Step 2: Overall profit is 20%, so Total SP = .
Step 3: MP of M = . MP of N = .
Step 4: Both are sold at discount.
Step 5: Total SP = .
Simplifying: .
Step 6: To maximize , we must minimize , which means we must maximize .
Step 7: Apply the boundary condition: Profit % on N .
.
.
So, .
Step 8: Substitute into the inequality:
.
Step 9: The maximum value of is 2.5. Substitute back to find :
.
.
Answer: 40