Question

A shopkeeper marks up the price of his product by 20%. If he increases the discount from 5% to 10% ,the profit would decrease by Rs 21. How much prot/ loss would he earn if he gives a discount of 20% on the marked price?

Answer 1

Let the Cost Price of the product be $C$ and the marked price be $M$

According to question M.P. = $C\times \frac{6}{5}$

Also According to question , $M\times \frac{95}{100}$- $M\times \frac{90}{100}$=$21$

Solving we get $M=420$ and $C=350$

S.P after 20% discount = $420\times \frac{8}{10}$=$336$

So profit earned = $Rs.14$