Question

A merchant makes 20% profit after giving 10% discount on marked prices but later realises that he had actually found the profit % on selling price. If the selling price of the product is 600, what is the actual profit percentage he would have got had he sold the product at marked price?

• A. 33.33%
• B. 36.67%
• C. 38.89%
• D. 40%

Answer 1

The correct option is C 38.89%

Let the MP be x
SP = 0.9x
Calculated profit % =20$=\left[\frac{SP-CP}{SP}\right]\times 100=\left[\frac{0.9x-CP}{0.9x}\right]\times 100$
$\Rightarrow 90x-100CP=18x\Rightarrow CP=0.72x$
Profit % had he sold the product at MP $=\left[\frac{x-0.72x}{0.72x}\right]\times 100=38.89\%$