Question

A manufacturer gains 25% after allowing a trade discount of 15% of the list price of an article. The cost of manufacturing the article is increased by 25% and the catalogue price is increased by 20% only. Find the new profit percent the same rate of discount.

Answer 1

Answer:

.........................

Step-by-step explanation:

....................

Answer 2

Answer:

20%

Step-by-step explanation:

Let us assume that the list price is x and the manufacturing cost is y.

Given that the manufacturer gains 25% after allowing a 15% discount on the list price.

So, we can write,

$(1-\frac{15}{100})x=(1+\frac{25}{100} )y$

⇒0.85x=1.25y  

⇒x=1.47 y ......... (1)

Now, the manufacturing cost is increased by 25%.

So, it becomes $(1+\frac{25}{100} )y$ = 1.25y ..... (2)

Again, the list price is increased by 20% and 15% discount is given on it.

So, selling price becomes  

$(1-\frac{15}{100} )(1+\frac{20}{100} )x$

=0.85(1.2) x

=1.02x ....... (3)

Then, from equations (2) and (3), we get the profit %.

Hence, profit %= $\frac{1.02x-1.25y}{1.25y}.100$

                         =$\frac{1.02(1.47y)-1.25y}{1.25y}.100$ {From equation (1)}

                         = $\frac{1.5-1.25}{1.25}$*100

                         =0.2*100

                         =20% (Answer)