A furniture store sells a chair for ₹X, making a 20% profit. During a festive season, they increase the marked price of the chair to ₹1.5X. They then offer a special discount of 20% on this increased marked price. What will be the percentage profit made by the store during the festive season?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 44%.
Let CP = 100
Normal SP = 120 (20% profit)
So, X = 120
Festive marked price = 1.5 × 120 = 180
Festive SP after 20% discount = 0.8 × 180 = 144
Profit percentage = (144 - 100)/100 × 100 = 44%