An article is marked at a price which is 1.2 times its cost price. After allowing a certain discount on the market price, the profit reduces to 10%. The discount percent is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 25/3
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Understanding |
Application |
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Discount % = [(MP – SP)]/MP] × 100 Given MP = 1.2 × CP And profit = 10% Let CP = 100 MP = 120 |
Since profit is 10%: SP = CP × 1.1 = 110 Hence, Discount % = [(120 – 110)]/120] × 100 = 100/12 = 25/3% |