If on an item a company gives 25% discount, they earn 25% profit. If they give…

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If on an item a company gives 25% discount, they earn 25% profit. If they give 10% discount then what is the profit percentage?

  1. A.

    40%

  2. B.

    55%

  3. C.

    35%

  4. D.

    None of these

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Show answer & explanation

Correct answer: D

Step-by-Step Solution

To determine the new profit percentage, we first need to establish the relationship between the Marked Price (MP), Selling Price (SP), and Cost Price (CP) based on the first scenario.

  1. Scenario 1: 25% Discount and 25% Profit

    • Let the Marked Price (MP) be Rs. 100.

    • Applying a 25% discount, the Selling Price (SP) = Rs. 100 - Rs. 25 = Rs. 75.

    • Since there is a 25% profit, the SP is 125% of the Cost Price (CP).

    • 1.25 * CP = 75

    • CP = 75 / 1.25 = Rs. 60.

  2. Scenario 2: 10% Discount

    • Keeping the MP at Rs. 100, apply a 10% discount.

    • New SP = Rs. 100 - Rs. 10 = Rs. 90.

    • The CP remains Rs. 60.

  3. Calculate New Profit Percentage:

    • New Profit = New SP - CP = Rs. 90 - Rs. 60 = Rs. 30.

    • Profit Percentage = (Profit / CP) * 100

    • Profit Percentage = (30 / 60) * 100 = 50%.

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