Question
'P' increases the price of a shirt by 20%. If he reduces
the discount percentage from 15% to 10%, his profit rises by Rs. 2400. Determine the profit or loss 'P' would incur if he offers a 25% discount on the marked price. Note: Break-even implies neither profit nor loss.Solution
ATQ,
Let, cost price of Shirt be Rs. x. So, markup price = Rs. 1.2x According to question, 1.2x × (0.9 – 0.85) = 2400 0.06x = 2400 x = 2400/0.06 x = Rs. 40000 So, markup price = Rs. 1.2 × 40000 = Rs. 48000 Selling price = 48000 × 0.25 = Rs. 36000 Therefore, required profit/loss = 40000 – 36000 = Rs. 4000 (loss)
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