Question

An article was marked 18% above its cost price and discount of 10% was offered during its sell. Find the profit or loss percentage occurred during the transaction?
1. 6.5%
2. 6.2%
3. 6.8%
4. 7.2%

Answer 1

Correct Answer - Option 2 : 6.2%

Given:
Marked up percentage = 18%

Discount = 10%

Concept:

Discount is offered on the marked price of the article. If there is no numeric value given, consider the CP to be Rs. 100 and solve the problem.

Formula used:

Selling Price = Marked Price - Discount

Profit % = (Profit/CP) × 100

Calculation:

Let, the CP = Rs. 100

∴ Marked up price = (18/100) × 100

= Rs. 18

∴ Marked Price = 100 + 18

= Rs. 118

∵ Discount % = 10%

∴ Discount Price = (10/100) × 118

= Rs. 11.8

∴ Selling Price = Marked Price - Discount

= 118 - 11.8

= Rs. 106.2

∵ The SP is greater than CP, thus there is a profit.

Profit = SP - CP

= Rs. 106.2 - Rs. 100

= Rs. 6.2

∴ Profit % = (Profit/CP) × 100

= (6.2/100) × 100

= 6.2%