If on an item a company gives 25% discount and 25% profit it makes. If they…
2026
If on an item a company gives 25% discount and 25% profit it makes. If they now gives 10% discount then the profit %age made by the company will be.
- A.
40
- B.
50
- C.
35
- D.
30
Attempted by 220 students.
Show answer & explanation
Correct answer: B
Answer: 50% profit.
Working:
Let the marked price be M and the cost price be C.
From the first scenario: 25% discount on M gives selling price 0.75M, and this equals cost plus 25% profit: 0.75M = 1.25C. Hence C = 0.75M / 1.25 = 0.6M.
With a 10% discount the new selling price is 0.9M.
Profit = (selling price − cost) / cost = (0.9M − 0.6M) / 0.6M = 0.3M / 0.6M = 0.5 = 50%.
Therefore the company makes a 50% profit when giving a 10% discount.