Question
A trader marks his goods 50% above cost price. During a
festival sale he offers a discount of 20% on the marked price and still makes a profit. If instead he had given a discount of 10% on the marked price, what would have been his overall profit percentage (on cost price)?Solution
ATQ, Let cost price = 100. Marked price = 150. Case 1 (20% discount): Selling price = 150 × 0.8 = 120 ⇒ profit = 20%. Case 2 (10% discount): Selling price = 150 × 0.9 = 135. Profit% = (135 − 100)/100 × 100 = 35%.
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