Question
An item is sold with a 30% discount on its marked price.
As a result of this discount, the seller earns a profit of 40%. Given that the marked price of the item is Rs. 60, calculate the difference between the profit earned and the discount given.Solution
Selling price of the item = 60 X 0.70 = RS. 42 So, cost price of the item = 42 X (100/140) = Rs. 30 Discount offered = 60 - 42 = Rs. 18 Profit earned = 42 - 30 = Rs. 12 Therefore, required difference = 18 - 12 = Rs. 6
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