Question

A salesman calculated his profit on the marked price and finds it to be $30\%$. He forgets the fact that he gave a discount of $20\%$. What is his actual profit percentage?

Answer 1

When profit is calculated on Marked Price (M.P) then,

C.P $=$ M.P $-P\%$

Let M.P $=100$

$\Rightarrow$ C.P $=100-30=70$

But S.P $=$ Rs.$80$ as he gave $20\%$ discount,

Now, Actual Profit $=\frac{80-70}{70}\times 100$

$=\frac{100}{7}\%$