Question

When a producer allows 36% discount on the retail price of his product, he earns a profit of 8.8%. What would be his profit percent if the discount is reduced by 24%?

• A. $45.5\%$
• B. $45.8\%$
• C. $46.4\%$
• D. $49.6\%$

Answer 1

The correct option is D $49.6\%$

Let retail price $=Rs.100$ then , Commission $=Rs36$

S.P = retail price- commission $=100-36=Rs64$

But Profit =$8.8$%

$C.P=\frac{(100\times C.P)}{(gain+100)}=\frac{(100\times 64)}{(100+8.8)}=\frac{1000}{17}$

New commission = Rs 12 then new S.P $=100-12=88$

Gain $=88-\left(\frac{1000}{17}\right)=\frac{496}{17}$

Gain % $=gain\times \frac{100}{C.P}$$=\frac{496\times 17\times 100}{17\times 1000}$

Gain % $=49.6$%