Question

When a commission of 12% is given on the marked price of a magazine, the publisher gains 20%. If the
commission is increased to 23%, what will be the publisher's percentage gain?​

Answer 1

Given :- When a commission of 12% is given on the marked price of a magazine, the publisher gains 20%. If the commission is increased to 23%, what will be the publisher's percentage gain ?

Solution :-

Let us assume that, the marked price of the item is Rs.100 .

Case 1) :-

→ marked price = Rs100

→ commission = 12%.

Than,

→ Selling Price = List Price * (100 - commission%) / 100 = {100 * (100 - 12)} / 100 = Rs.88

Now, we have ,

→ selling Price of magazine = Rs.88

→ Profit % = 20%.

Than,

→ Cost Price of magazine = (Selling Price * 100) / (100 + Profit%) = (88 * 100) / (100 + 20) = (88 * 100) / 120 = Rs.(220/3).

Case 2) :-

→ marked price = Rs.100

→ commission = 23%.

Than,

→ Selling Price = marked Price * (100 - commission%) / 100 = {100 * (100 - 23)}/ 100 = Rs.77

Now, we have ,

→ selling Price of magazine = Rs.77

→ Cost Price of magazine = Rs.(220/3) .

Therefore,

» Profit = selling Price - cost Price = 77 - (220/3) = Rs.(11/3) .

Hence,

→ Gain % = (gain in Rs. * 100) / (cost Price)

→ Gain % = (11 * 100 * 3) / (3 * 220)

→ Gain % = 5% (Ans.)

∴ when the commission is increased to 23%, the publisher's gains 5% .

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