Diaries with spoilage and discount — A printer expects 40% profit at marked price, but 8% of diaries are spoiled (unsellable). Of the remaining 92%, thirty-two percent of the total (i.e., 32 diaries per 100) are sold at 75% of cost price; the remaining 60% of the total are sold at the expected marked-price level (40% profit). What is the net profit or loss percentage on the entire consignment?

Introduction / Context: The lot faces two setbacks: physical spoilage and a tranche sold below cost. The rest sells at the planned 40% margin. Because total cost includes all diaries (even spoiled ones), we must compute revenue across cohorts and compare to full outlay to obtain the net percentage result.

Given Data / Assumptions:

• Take 100 diaries, cost per diary = C ⇒ total cost = 100C.
• 8% spoiled ⇒ no revenue from 8 diaries.
• 32% sold at 75% of cost ⇒ SP = 0.75C each.
• 60% sold at the expected 40% profit ⇒ SP = 1.40C each.

Concept / Approach: Compute total revenue by summing cohort revenues. Net percentage = (Total revenue − Total cost) / Total cost * 100.

Step-by-Step Solution:

Verification / Alternative check: Average revenue per diary overall = 108C/100 = 1.08C, which is 8% above cost per diary. Spoilage is accounted for in the per-lot view.

Why Other Options Are Wrong: 6% and 10% are not supported by the cohort arithmetic; “can’t be determined” is incorrect because all necessary data are provided; 4% is too low.

Common Pitfalls: Applying 75% to the marked price instead of cost, or excluding spoiled units from the cost base.

Final Answer: 8%