A shopkeeper sells a table at 25% discount on the marked price and earns a profit of 70%. If he sells the same table at 50% discount, then his new profit percentage will be:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. .
SP = MP × (100 - D)/100
SP = CP × (100 + P)/100
Let the marked price of the article be 100x.
SP = 100x × (100 - 25)/100
⇒ 75x
Now, 75x = CP × (100 + 70)/100
⇒ CP = 75x × 100/170
⇒ CP = 750x/17
Now, SP when discount is 50% = 100x × 50/100
⇒ 50x
Now, new profit percentage = (50x - 750x/17)/(750x/17) × 100
⇒ 100x × 17/(17 × 750x) × 100
⇒ 40/3 =