A person purchased a machine for Rs. 50,000 and fixed the marked price 20% higher than the cost price and sold it at a discount of 15%. The percentage profit or loss is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 2% profit.
Given:
Cost price = Rs 50000
Discount% = 15%
Formula used:
Selling price = Marked price × (100 - discount)/100 ---- (1)
Profit = Selling price - cost price
Profit % = (Profit/Cost price) × 100 ---- (2)
Calculations:
According to the question,
⇒ Marked price = 50000 × 120% = 60000
Using equation (1), we get
⇒ Selling price = 60000 × (100 - 15)/100 = 51000
Profit = 51000 - 50000 = 1000
Using equation (2), we get
Profit % = (1000/50000) × 100 = 2%