Question
A trader marks up the price of an article by 50% above
the cost price. He then offers a discount of 20% on the marked price. What is his profit percentage based on the selling price?Solution
Let the cost price be 100. Marked price = 150. Selling price after 20% discount = 120. Profit = 120 - 100 = 20. Profit percentage based on selling price = 20 / 120 × 100 = 16.67%. The profit percentage is 16.67%.
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