Question

if a merchant offers a discount of 30% on the list price, the he make a loss of 16%.what % profit or %loss will he make if he sells at a discount of 20% of the list price?

Answer 1

using formula

CP/MP = (100 - discount %) / (100 - loss %)

CP/MP = (100-30) / (100 - 16 )

CP/MP = 70 / 84

84 × 20 / 100
= 16.8
then
CP/SP = 70 / 67.2
loss % = 2.8 / 70 × 100
= 4 %