Ramesh sells an article for ₹34,440, after allowing an 18% discount on the marked price and still manages to gain 40% profit. If Ramesh sold the article at a 12% discount on the marked price, then what will be his profit, correct to two places of decimals?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 50.24%.
Let the marked price be 'M'.
Selling price after 18% discount = M × (1 - 0.18) = 0.82M
Given: Selling price after discount = ₹34,440
⇒ 0.82M = 34440
⇒ M = 34440 / 0.82
⇒ M = ₹42,000
Given: Profit percentage = 40%
⇒ Selling price after discount = Cost price × (1 + 0.40) = 1.4 × Cost price
⇒ 0.82M = 1.4 × Cost price
⇒ Cost price = (0.82 × 42000) / 1.4
Cost price = ₹24,600
⇒ New selling price = M × (1 - 0.12) = 42000 × 0.88 = ₹36,960
⇒ New profit = New selling price - Cost price
⇒ New profit = 36960 - 24600 = ₹12,360
⇒ New profit percentage = (New profit / Cost price) × 100
⇒ New profit percentage = (12360 / 24600) × 100 = 50.24%
Therefore, Ramesh's new profit percentage is 50.24%.