A retailer purchased radio sets at the rate of Rs.4000 each from a wholesaler.…
2024
A retailer purchased radio sets at the rate of Rs.4000 each from a wholesaler. He raised the price by 20% and then allowed a discount of 10% on each set. His profit will be
- A.
10%
- B.
8%
- C.
9%
- D.
12%
Attempted by 1 students.
Show answer & explanation
Correct answer: B
Step-by-Step Solution
To find the profit percentage, we need to determine the final selling price relative to the original cost price.
Calculate the Marked Price (MP):
The cost price (CP) is Rs. 4000.
The price is raised by 20%.
Markup amount = 20% of 4000 = 0.20 * 4000 = Rs. 800.
Marked Price = 4000 + 800 = Rs. 4800.
Calculate the Selling Price (SP):
A discount of 10% is allowed on the marked price.
Discount amount = 10% of 4800 = 0.10 * 4800 = Rs. 480.
Selling Price = 4800 - 480 = Rs. 4320.
Calculate the Profit Percentage:
Profit = SP - CP = 4320 - 4000 = Rs. 320.
Profit Percentage = (Profit / CP) * 100
Profit Percentage = (320 / 4000) * 100 = 8%.