A shopkeeper marks up the price of the oil by 40% and uses a faulty machine which measures 15% less. If the shopkeeper gives a discount of 32%, the profit/loss percentage is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 12% Profit.
Let's cost price (CP) = 100
Marked price (MP) = 100 + 40% of 100
⇒ MP = 100 + 40
⇒ MP = 140
The faulty machine measures 15% less, so the customer gets only 85% of the quantity.
Discount % = (Marked Price - Selling Price)/Marked Price × 100
Selling price before discount (SP) = 140
Discount given = 32% × 140
Discount = 0.32 × 140
Discount = 44.8
Selling price after discount = 140 - 44.8 = 95.2
Effective quantity sold = 85% of CP = 85% of 100
Effective quantity sold = 85
Profit = SP - Effective CP
Profit = 95.2 - 85
⇒ Profit = 10.2
Profit percentage = Profit/cost price × 100 = (10.2/85)×100
⇒ Profit percentage = 12%