Question

A tradesman marks his goods 25% above the cost price and allows his customers 12 % reduction on their bills. What percent profit does he make?

Answer 1

10 %

Let us assume the cost price of his good be Rs. 100

Given:

If we assume the cost price to be Rs. 100 then Marked price will be

= Rs. 125

Discount Percentage = 12 %

Selling Price = 88 % of Marked Price

(100 - 12 = 88 %)

Calculating the Selling Price by substituting the known values in the formula we get:

= 88 % of 125

= 88/100 x 125

= 88/4 x 5

= 22 x 5

= Rs. 110

Therefore, the Selling Price is Rupees. 110.

Formula that we use to calculate Profit:

Profit = Selling Price - Cost Price

Substituting values known to us in this formula we get:

= 110 - 100

= Rs. 10

As we assumed the Cost Price to be Rupees Hundred:

Profit = Profit %

Hence, the Profit % = 10 %

Therefore, the percentage profit he makes is 10 %.