Question

A dealer sells an article by allowing a 15% discount on its marked price and gains 12%. If the cost price of the article is increased by 10%, how much discount percentage should he allow now on the same marked price so as to earn the same percentage profit as before?
1. 7%
2. 6.5%
3. 7.5%
4. 6%

Answer 1

Correct Answer - Option 2 : 6.5%

Given:

Discount = 15%

Gains = 12%

Formula used:

Discount % = (M.P – S.P)/M.P × 100

Calculation:

Let C.P of an article be 100 unit

⇒ For 12% profit S.P = 112 unit

15% discount on mark price

⇒ S.P = 85% = 112 unit

⇒ M.P = 100% = ?

⇒ M.P = (100 × 112)/85

⇒ M.P = 2240/17

If C.P increased by 10%

⇒ New S.P = 110 unit

⇒ For 12% profit new S.P = (110 × 112)/100

⇒ 616/5

Discount % = (M.P – S.P)/M.P × 100

⇒ (2240/17 – 616/5)/(2240/17) × 100

⇒ 6.5%

∴ The discount percentage should be allowed now on the same marked price is 6.5%