If the cost price of an article is 20% less than its marked price and a shopkeeper allows a discount of 10%. Find its profit or loss percent?
- AOption (a)
12.5% loss
- BOption (b)
12.5% profit
- COption (c)
25% loss
- DOption (d)
25% profit
- EOption (e)
12% profit
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Correct answer
12.5% profit
Why this answer is correct
Given:
The cost price of an article is 20% less than its marked price.
Discount% = 10%
Concept:
We assume total percentage will 100%.
Formula used:
S.P = M.P × [(100 – D%)/100]
P = S.P – C.P
P% = (P/C.P) × 100
Where, C.P = Cost Price, S.P = Selling Price, P = Profit, D = Discount, M.P = Marked Price
Calculation:
Let the marked price of an article be Rs. x.
Then C.P = x × (100 – 20)% = x × 80% = 4x/5
After 20% discount,
S.P = M.P × [(100 – D%)/100]
⇒ x × [(100 – 10)/100]
⇒ x × (90/100)
⇒ 9x/10
Since S.P > C.P
P = S.P – C.P
⇒ (9x/10) – (4x/5)
⇒ (9x – 8x)/10
⇒ x/10
P% = (P/C.P) × 100
⇒ [(x/10)/(4x/5)] × 100
⇒ [(x/10) × (5/4x)] × 100
⇒ 1/8 × 100
⇒ 25/2
⇒ 12.5
∴ The Profit percentage is 12.5%
Alternate Method
Let M.P be 100.
C.P = 100 – 20 = 80
S.P = 100 – 10 = 90
P = S.P – C.P = 90 – 80 = 10
P% = (P/C.P) × 100 = (10/80) × 100 = 12.5
∴ The Profit percentage is 12.5%