Question:
A pharmaceutical company made 3000 strips of tablets at a cost of Rs. 4800. The company gave away 1000 strips of tablets to doctors as free samples. A discount of 25% was allowed on the printed price. Find the ratio profit if the price is raised from Rs. 3.25 to Rs. 4.25 per strip and if at the latter price, samples to doctors were done away with. (New profit / Old profit).

Option A):
75
Option B):
55.5
Option C):
99.25
Option D):
63.5

Correct Answer is Option D):
63.5

Explanation:
Total sales revenue (Old) = 2000*3.25*0.75 = 4875
[0.75 as 25% discount was allowed]
ProfitOld = Total sales revenue - 4800
= 4875-4800 = 75
Total sales revenue (New) = 3000*4.25*0.75 = 9562.5
[New price is calculated on doctors samples as well.]
ProfitNew = 9562.5 - 4800 = 4762.5
Ratio,
ProfitNew / ProfitOld = 4762.5/75 = 63.5.