A retailer buys 50 pens at the marked price of 44 pens. If he sells these pens at a discount of 1% on the marked price, what is the profit percent?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 12.5%.
A retailer buys 50 pens at the marked price of 44 pens
So,
50 Cost Price = 44 Marked Price
CP/MP = 22/25
MP/CP = (100 + Profit %)/(100 - discount%)
⇒ 25/22 = (100 + Profit %)/(100 - 1)
⇒ (99 × 25)/22 = (100 + Profit %)
⇒ Profit % = 112.5 - 100
⇒ Profit % = 12.5%