Question

A shopkeeper sells a table at a discount of 20% and earns a profit of 60% If he sells the same table at 40% discount then what will be his new profit percent

Answer 1

Solution :-

Let the Marked Price (Price before discount) of the table be Rs. 100

Selling Price = Marked Price - Discount

⇒ SP = 100 - (100*20)/100

⇒ 100 - 20

⇒ Rs. 80

So, Selling Price of the table after giving 20 % discount is Rs. 80

After giving 20 % discount, the shopkeeper still makes a profit of 60 %

Then,

Cost Price = (80*100)/160

= Rs. 50 

So, the cost price of the table is Rs. 50

Now, the discount is allowed at the rate of 40 %.

Then, Selling Price of the table = 100 -  (100*40)/100

⇒ 100 - 40

= Rs. 60

So, selling price of the table after allowing 40 % discount is Rs. 60

Cost Price is Rs. 50

Profit = SP - CP

⇒ 60 - 50

Profit = Rs. 10

Profit % = (Profit*100)/CP

⇒ (10*100)/50

⇒ 1000/50

⇒ 20 %

So, the shopkeeper will earn 20 % profit if he allows 40 % discount (instead of 20 % discount) on the same table.

Answer.