Shortcut Trick
Let the Original Price = 100
Cost Price for Ram = 100 − 30% = 70
Selling Price = 70 + 50% of 70 = 105
Profit on Original Price = 105 − 100 = 5
Required Profit % = (5 ÷ 100) × 100 = 5%
∴ The correct answer is 5%.
Alternate Method
Given:
Discount on Original Price = 30%
Profit on Cost Price = 50%
Formula Used:
Cost Price (CP) = Original Price × (1 − Discount%)
Selling Price (SP) = CP × (1 + Profit%)
Profit % = [(SP − Original Price) ÷ Original Price] × 100
Original Price
100
Cost Price
70
Selling Price
105
−30%
+50%
Profit on Original Price = 5%
Calculation:
⇒ Let the Original Price of the cell phone be 100.
⇒ Ram paid 30% less than the original price, so Cost Price (CP) = 100 − (30% of 100) = 70
⇒ He sold it at a 50% profit on his Cost Price.
⇒ Profit amount = 50% of 70 = 35
⇒ Selling Price (SP) = 70 + 35 = 105
⇒ We need to find the profit percentage relative to the Original Price.
⇒ Profit earned on Original Price = SP − Original Price = 105 − 100 = 5
⇒ Percentage profit on Original Price = (5 ÷ 100) × 100 = 5%
∴ The correct answer is 5%.
Additional Information
Marked Price & Discount
Discount is fundamentally always calculated on the Marked Price (or Original Price) unless stated otherwise. SP = MP × (1 − Discount%).
Successive Percentage Change
When a value undergoes two successive changes of a% and b%, the net percentage change is given by the formula: [a + b + (a×b)÷100]%.
Base of Calculation
Usually, profit and loss are calculated over the Cost Price (CP). However, if specifically mentioned in the question (like in this case), it can be calculated over the Original Price or Marked Price.