Question
A shopkeeper buys 20 articles for Rs 5,000. He sells
each article at 25% profit on the cost price. Due to a seasonal sale, he offers a 10% discount on the selling price. What is the total profit the shopkeeper earns after selling all the articles?Solution
Cost price per article = 5000/20 = 250. Selling price per article (with 25% profit) = 250 + (25/100) × 250 = 250 + 62.5 = 312.5. Discount on selling price per article = 10% × 312.5 = 31.25. Selling price after discount per article = 312.5 - 31.25 = 281.25. Profit per article = 281.25 - 250 = 31.25. Total profit for 20 articles = 31.25 × 20 = 625.
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