Question

trader gives 35% discount and makes 30% profit on cost. Due to recession, the cost price reduces by 20%. By what per cent should he lower the list price, if he wished to keep the profit percentage and the discount percentage same as before? ​

Answer 1

Answer: 20%

Step-by-step explanation:

Let the  P of the product be 100

Then SP = 100 + 30% of 100 = 130

The List Price = 130/0.65 = 200

Now, New CP = 100 - 20% of 100 = 80

Then new SP = 80 + 30% of 80 = 104

Then new LP = 104/0.65 = 160

Difference in list price = 40

Therefore, he needs to decrease the list price by 20%