A retailer announces a discount of 40% for selling a food processor marked at ₹86,000. The cost price of the food processor is 60% below the marked price. He offers a further discount of 10% if the buyer presents his membership card of the retailer’s store. The profit of the retailer with the membership card scheme is what percentage of the profit of the retailer without the membership card scheme?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 70%.
Profit % = (Selling price- Cost price)/Cost price× 100
The marked price of food processor = 86000
Cost price of food processor = 86000 × 40/100 = 34400
Price after discount = 86000 × 60/100 = 51600
Price after membership card discount = 51600 × 90/100 = 46,440
Profit after membership card discount = {46440 - 34400} = 12040
Profit without membership card discount = {51600 - 34400] = 17200
The profit of the retailer with a membership card scheme is x% of the profit of the retailer without a membership card scheme -
⇒ 12040 = 17200(x/100)
⇒ 12040/172 = x
⇒ x = 70%