If the marked price of a mat is 76% more than its cost price and a discount of 25% is announced on it, then find the profit percentage.
- AOption (a)
29%
- BOption (b)
34%
- COption (c)
35%
- DOption (d)
32%
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Correct answer
32%
Why this answer is correct
Shortcut Trick
Successive percentage change formula: Net Change = a + b + (a × b) ÷ 100.
Here, markup a = 76% and discount b = −25%.
Profit% = 76 − 25 − (76 × 25) ÷ 100.
Profit% = 51 − (1900 ÷ 100) = 51 − 19 = 32%.
∴ The correct answer is 32%.
Alternate Method
Given: Marked Price (MP) is 76% more than Cost Price (CP). Discount is 25%.
Formulas: MP = CP × (100 + Markup%) ÷ 100 | SP = MP × (100 − Discount%) ÷ 100 | Profit% = (SP − CP) ÷ CP × 100.
⇒ Let Cost Price (CP) = 100.
⇒ Marked Price (MP) = 100 + 76% of 100 = 176.
⇒ Selling Price (SP) = MP − 25% of MP = 176 − (25 ÷ 100 × 176).
⇒ SP = 176 − 44 = 132.
⇒ Profit = SP − CP = 132 − 100 = 32.
⇒ Profit% = (32 ÷ 100) × 100 = 32%.
∴ The correct answer is 32%.
Additional Information
Marked Price and Discount
The price listed on the product is the Marked Price. Discount is always calculated on the MP to arrive at the Selling Price.
Profit and Markup
Markup is the increase over CP to set MP. Profit is the actual gain over CP after selling. Profit% = Markup% − Discount% − (Markup% × Discount% ÷ 100).