A seller marks up his product by 50% and offers two consecutive discounts of 10% each. What is his profit percentage?
Show answer & explanation
Correct answer: B
Explanation
Marked Price = 50% higher
Discounts = 10% and 10%
According to the formula:
Successive Discount = 10 + 10 − (10 × 10 / 100)
Profit % = (SP − CP) / CP × 100
Assume CP = 100
MP = 150
Total Discount = 10 + 10 − 1 = 19%
SP = 150 × 81 / 100 = 121.5
Profit = 121.5 − 100 = 21.5
Profit % = 21.5%