A shopkeeper marks the price of his goods at 20% higher than the cost price and allows a discount of 10%. What is his profit percentage?
- A10%
- B6%
- C8%
- D4%
Solution & Step-by-step Explanation
Let the Cost Price (CP) be 100.
The Marked Price (MP) is 20% higher than the CP:
MP=100+20=120
A discount of 10% is given on the MP:
Discount=10% of 120=12
Selling Price (SP)=120−12=108
Profit Percentage=
CP
SP−CP
×100=
100
108−100
×100=8%
Alternatively, using successive percentage formula:
Net Profit%=x+y+
100
xy
Here, x=20 (markup) and y=−10 (discount).
Net Profit%=20−10+
100
20×(−10)
=10−2=8%
The Marked Price (MP) is 20% higher than the CP:
MP=100+20=120
A discount of 10% is given on the MP:
Discount=10% of 120=12
Selling Price (SP)=120−12=108
Profit Percentage=
CP
SP−CP
×100=
100
108−100
×100=8%
Alternatively, using successive percentage formula:
Net Profit%=x+y+
100
xy
Here, x=20 (markup) and y=−10 (discount).
Net Profit%=20−10+
100
20×(−10)
=10−2=8%