On an item, if a company gives 25% discount, they earn 25% profit. If they now…
2024
On an item, if a company gives 25% discount, they earn 25% profit. If they now give 10% discount then what is the profit percentage.
- A.
40%
- B.
45%
- C.
50%
- D.
30%
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Correct answer: C
Answer: 50%
Let the marked price be 100.
With a 25% discount the selling price is 100 − 25 = 75.
This selling price gives a 25% profit, so cost price = 75 × (100/125) = 60.
If the discount is 10%, the new selling price is 100 − 10 = 90.
Profit = 90 − 60 = 30, so profit% = (30/60) × 100 = 50%.
Hence the profit percentage when a 10% discount is given is 50%.