A mobile phone retailer sells a phone for ₹P and earns a profit of 20%. For a special festive offer, he marks the same phone at ₹1.5P. At the offer, he provides a discount of 10%. What will be the percentage profit that he will make during the festive offer?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 62%.
CP = P/1.2
MP = 1.5P
SP at 10% discount = 0.9 × 1.5P = 1.35P
Profit = 1.35P – (P/1.2) = 0.62P/1.2
Profit percentage = [(0.62P/1.2) ÷ (P/1.2)] × 100
= (0.62P/1.2) × (1.2/P) × 100
= 0.62 × 100
= 62%