A merchant marks his goods 49% above the cost price and offers an 18% discount. If his profit is x%, find the value of x.
- AOption (a)
24.18
- BOption (b)
22.18
- COption (c)
21.18
- DOption (d)
23.18
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Correct answer
22.18
Why this answer is correct
Shortcut Trick
Apply the Successive Percentage Change formula: Net Profit% = a + b + (ab ÷ 100)
Where a (Markup) = +49 and b (Discount) = −18
Profit% (x) = 49 − 18 − (49 × 18 ÷ 100)
x = 31 − 8.82 = 22.18%
∴ The correct answer is 22.18%.
Alternate Method
Given: Markup Percentage = 49% and Discount Percentage = 18%
Formula used: Selling Price (SP) = Cost Price (CP) × (100 + Markup%)/100 × (100 − Discount%)/100
Let the Cost Price (CP) of the goods be 100 units.
⇒ Marked Price (MP) = 100 + 49% of 100 = 149 units
⇒ Discount Amount = 18% of MP = (18 ÷ 100) × 149
⇒ Discount = 0.18 × 149 = 26.82 units
⇒ Selling Price (SP) = MP − Discount = 149 − 26.82 = 122.18 units
⇒ Profit (x) = SP − CP = 122.18 − 100 = 22.18 units
⇒ Profit Percentage (x%) = (22.18 ÷ 100) × 100 = 22.18%
∴ The correct answer is 22.18%.
Additional Information
Relationship between CP and MP
The ratio of Cost Price to Marked Price is given by: CP / MP = (100 − Discount%) / (100 + Profit%).
Successive Discounts
When two successive discounts d1% and d2% are given, the Equivalent Single Discount = [d1 + d2 − (d1 × d2 ÷ 100)]%.
Markup Percentage
The percentage by which MP is higher than CP: Markup% = [(MP − CP) ÷ CP] × 100.