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    Question

    Which of the following statement(s) is/are correct?

    I. The marked price of an article is 50% more than its cost price. The profit earned on selling the article at 20% discount would be 300% more than the profit earned on selling the same article at 30% discount. II. A seller sold an article for Rs. 840, earning a total profit of 40%. If he marked up the price of the article by 50% and sold it after giving a flat discount of Rs. 150, then he would earn the same profit as he had earned earlier. Which of the following statement(s) is/are correct?I. The marked price of an article is 50% more than its cost price. The profit earned on selling the article at 20% discount would be 300% more than the profit earned on selling the same article at 30% discount.II. A seller sold an article for Rs. 840, earning a total profit of 40%. If he marked up the price of the article by 50% and sold it after giving a flat discount of Rs. 150, then he would earn the same profit as he had earned earlier.
    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C Both I and II Correct Answer Incorrect Answer
    D Neither I nor II Correct Answer Incorrect Answer

    Solution

    For statement I: Let the cost price (CP) of the article be Rs. 100x.
    So, marked price (MP) = 100x ├Ч 1.5 = 150x.
    Selling price when sold at 20% discount = 150x ├Ч 0.8 = 120x.
    Profit at 20% discount = 120x тИТ 100x = 20x.
    Selling price when sold at 30% discount = 150x ├Ч 0.7 = 105x.
    Profit at 30% discount = 105x тИТ 100x = 5x.
    Statement says: profit at 20% discount is 300% more than profit at 30% discount.
    тАЬ300% moreтАЭ = original + 300% of original = 400% of original = multiply by 4.
    Check: 5x ├Ч 4 = 20x.
    So 20x = 20x тЖТ Statement I is true.
    For statement II: Selling price = Rs. 840; profit = 40%.
    So CP = 840 ├╖ 1.40 = Rs. 600.
    Profit earlier = 840 тИТ 600 = Rs. 240.
    If he marks up the price by 50%: Marked price = 600 ├Ч 1.5 = Rs. 900.
    After discount of Rs. 150, selling price = 900 тИТ 150 = Rs. 750.
    Profit now = 750 тИТ 600 = Rs. 150.
    150 тЙа 240 тЖТ Statement II is false.

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