Question

A shopkeeper sells a table at a discount of 20% and earns a profit of 60%. If he sells the same table at 30% discount, then what will be his new profit percent?
1. 10%
2. 20%
3. 30%
4. 40%

Answer 1

Correct Answer - Option 4 : 40%

Given:

Discount % (D1) = 20%, Profit % (P₁) = 60%

Discount % (D₂) = 30%, Profit % (P2) = ?

Formula used:

S.P = M.P × (100 – D%)/100 

C.P = S.P × 100/(100 + P%) 

P = S.P – C.P 

P% = (P/C.P) × 100

Where,

S.P → Selling price 

C.P → Cost price 

M.P → Marked price 

D% → Discount% 

P% → Profit% 

Calculations:

Let the M.P of the product be 100x 

So, S.P of the product = 100x × (100 – 20)/100 = 80x 

C.P of the product = 80x × 100/(100 + 60) =50x 

If the discount of the product is 30% 

Now, the S.P of the product = 100x × (100 – 30)/100 = 70x 

Profit = 70x – 50x = 20x 

Profit% = (20x/50x) × 100 = 40%

∴ The required profit% is 40%