A driver of a Autorickshaw makes a profit of 10% on every trip when he carries 3 passengers and his total cost per km is Rs. 100. Find the percentage profit for same journey if he goes for four passengers per trip and the his cost per km reduces to Rs. 90? (Assume that revenue per passenger is the same in both the cases)
Explanation:
Assuming 3 passengers travel for exactly 1 km.
Cost of the trip = Rs. 100 and income from a trip = Rs. 110
Since cost per km reduces by 10%, total cost will also reduce by 10%.
∴ New total cost = 100 × 0.9 = Rs. 90.
Now number of passengers increase from 3 to 4 i.e., 33.33% hence income also increases 33.33%.
∴ New total income = 110 × 1.3333 = 146.67.
% Profit = (146.67 - 90)/90 × 100 = 62.9%
Hence, option (c).
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