Question

What is the percentage of profit earned by the owner ,if he marks the product 20% over the cost price and gives a discount of 10% but charges 5% of the billed price as service tax?

Answer 1

Answer:

Percentage of profit earned by the owner is 13.4%.

Step-by-step explanation:

Given : The owner marks the product 20% over the cost price and gives a discount of 10% but charges 5% of the billed price as service tax.

To find : What is the percentage of profit earned by the owner?

Solution :

Let the CP be x,

The owner marks the product 20% over the cost price

$MP=\frac{120x}{100}$

Later the discount of 10%

i.e, $\frac{120x}{100}-\frac{12x}{100}=\frac{108x}{100}$

Later service tax as 5%

$SP=\frac{108x}{100}\times\frac{105}{100}$

$SP=\frac{1134x}{1000}$

Profit =SP-CP

$P=\frac{1134x}{1000}-x$

$P=\frac{1134x-1000x}{1000}$

$P=\frac{134x}{1000}$

$P=0.134x$

Then convert it into Percentage

$P\%=\frac{134x}{1000}\times\frac{100}{x}=13.4\%$

Therefore, Percentage of profit earned by the owner is 13.4%.