Question

A shopkeeper's price is 50% above the cost price. If he allows his customer a discount of 30% what profit does he make?

• A. 15 %
• B. 10 %
• C. 5 %
• D. 20 %

Answer 1

Answer: (C)

5 %

Let CP = 100
MP = 150
Discount = 30%
we have,
$SP=\frac{CP(100+g)}{100}=\frac{Mp(100-d)}{100}$
So,
$\frac{100\times (100+g)}{100}=\frac{150\times (100-30)}{100}$
$100+g$ = $\frac{150\times 70}{100}=105$
$g=105-100=5\%$