By selling a watch at 80% of its marked price, a shopkeeper loses 4%. What would have been his profit percentage if he had sold it at 95% of the marked price?
Show answer & explanation
Correct answer: A
Explanation
Let the Marked Price (MP) = ₹100.
At 80% of the marked price:
SP = 80% of ₹100 = ₹80
There is a loss of 4%, so:
SP = 96% of CP
Therefore,
CP = (80 × 100)/96 = ₹250/3
If the watch is sold at 95% of the marked price:
New SP = 95% of ₹100 = ₹95
Profit = 95 − 250/3
= 35/3
Profit% = (Profit/CP) × 100
= (35/3)/(250/3) × 100
= 14%
Answer: 14%