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

Let the Cp be x
First marking of product will be 120x/100
Later the discount of 10%
It means 120x/100-12x/100=108x/100
Later servise tax 108x/100×105/100
=1134x/1000=S.p.
Profit =Sp-Cp
=(1134-1000/1000)
=134x/1000
=0.134x
Then convert it into Percentage
134/1000×100/x=13.4%