urhowig wrote:
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate.
Choice D , which says that a part of the gifts are sponsored by the companies from which they have purchased- tells us that they have made a profit . This in NO way says that the amount paid during the hour or the pledged amount is more than the cost of the gift.
In simple words , option A - says that Selling Price (SP) is more than the Cost Price (CP).
But Option D - says that the actual CP is less than the CP of all the gifts.
I hope I'm able to explain what I wanted to.
So, option A should be the right answer.
Thanks
There are 3 parties invloved here.
The sellers of the gift
The organisers of the programs
The pledgers.
Option D:
The cost price of the sellers of the gifts does not come in the question. Suppose the selling price (retail price) of the gifts (from sellers) is $x and the sellers
sold n gifts to the organisers and
sponsored n gifts. This implies that the
organisers had to pay $nx, whereas the organisers received 2n number of gifts.
Now the pledgers made 2n number of pledges. The money received from each pledge is $x (= retail price of the gifts). Thus total money received by the orgnaisers from the pledgers is $2nx.
Thus the amount paid by organisers is $2nx and pays an amount of $nx.
Option A:
The postage cost was included in $x; nonetheless the organisers had to pay this postage cost to the sellers.