A shopkeeper organizes sale on Friday, offering a discount of 23% on all items. Still, he makes a profit of 10% only. By how much percentage CP was lower than MP?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 30%
we know that,
Profit% (P) is the successive of marked up% (M) and discount% (D),
So,
⇒ M - D - (M × D)/100 = 10
⇒ M - 23 - (23M)/100 = 10
⇒ M - 23M/100 = 33
⇒ 77M/100 = 33
⇒ M = 42.85%
So, marked up price is 42.85% higher than Cost price.
We also know that,
If the value of an item up by x%, the percentage reduction to be now made
to bring it back to original level is [100x/(100 + x)]%
⇒ [(100 × 42.85)/(100 + 42.85)]% = 29.99% ≈ 30%
So, cost price is 30% less than marked up price.