A furniture establishment initially disposes of a particular dining table for ₹Z, thereby realising a 25% profit margin. Subsequently, as a promotional strategy for a festive period, the marked price of this identical table is elevated to ₹1.6Z. Following this adjustment, a special concession of 20% is applied to the newly established market price. The inquiry then seeks to ascertain the resulting percentage profit generated by the store during this specific celebratory sales period. What is the percentage profit earned by the store during the festive sale?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 60%.
Selling price initially = Z
CP = Z/1.25 = 0.8Z
Festive MP = 1.6Z
SP after 20% discount = 1.6Z × 0.8 = 1.28Z
Profit = 1.28Z – 0.8Z = 0.48Z
Profit percentage = (0.48Z/0.8Z) × 100 = 60%