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.