An article costs₹1,000 for a salesman. He fixes its marked price as₹1,500. He sells it to a customer at a discount of 20%. He gives a further discount of 10% for each cash payment. Find the percentage of loss or gain that the salesman makes on sale.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. gain 8%.
Cost price of the article (CP) = ₹1,000
Marked price of the article (MP) = ₹1,500
Discount at first time = (20/100) × 1500 = ₹300
Selling price after first discount = 1500 - 300 = ₹1,200
Discount at second time = (10/100) × 1200 = ₹120
Final selling price = 1200 - 120 = ₹1,080
Profit = Selling price - Cost price = 1080 - 1000 = ₹80
Profit percentage = (Profit/CP) × 100 = (80/1000) × 100 = 8%
Therefore, the salesman makes a profit of 8%.