Abhishek marks the price of his laptop 50 percent above the cost price. He allows his customer a discount of 30 percent on the marked price. What is the profit percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 5 percent.
The cost price (C.P.) = ( C).
⇒ M.P. = C + 0.5C = 1.5C
A 30% discount on the marked price means the selling price (S.P.) is:
S.P. = M.P. - 30 % of M.P. = 1.5C - 0.3 × 1.5C = 1.5C × (1 - 0.3) = 1.5C × 0.7 = 1.05C
⇒Profit = S.P. - C = 1.05C - C = 0.05C
⇒ Profit percentage = Profit / C × 100 = 0.05C / C × 100 = 5%