A dealer gains 20% by selling an article at 25% discount on its marked price. If the cost price of the article is decreased by 15%. how much discount percentage should he now give on the same marked price so as to earn the same percentage of profit as before?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 36.25%.
Let the CP = 100x
SP = 100x × 120% = 120x.
MP = 120x × 100/75 = 160x.
Now the CP is decreased by 15%,
CP = 100x × 85% = 85x.
SP of an article to gain 20% = 85x × 120% = 102x.
Discount = 160x - 102x = 58x.
Discount% = 58x/160x × 100 = 36.25%.