Question

A television’s marked price is 35% above the cost price and a discount of 20% is given on the marked price. Find the profit % or loss % that is made by the shopkeeper.

• A. 6% profit
• B. 8% profit
• C. 6% loss
• D. 8% loss

Answer 1

The correct option is B 8% profit

Let the cost price of the television be $x$

Marked price of the televison $=x+135\text{\% of}x$
$=x+\frac{35}{100}\times x=x+0.35x=1.35x$

Discount provided on marked price $=20\text{\% of}1.35x$
$=\frac{20}{100}\times 1.35x=0.2\times 1.35x=0.27x$

Selling price $=$ Marked price - Discount
$=1.35x-0.27x$
$=1.08x$

As $1.08x$ > $x$, shopkeeper gets a profit of $0.8x$.

$\text{Profit percentage}=\frac{\text{Profit}}{\text{Cost price}}\times 100$
$=\frac{0.8x}{x}\times 100$
$=0.8\times 100=8$%

The correct option is B.