The cost price of an article is 60 percent of the marked price. What will be the profit percentage after allowing a discount of 4 percent on the marked price?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 60 percent.
Let the M.P. be 100x
Then, the C.P. of the article is 60% of x = 0.6x
4% discount on marked price
Discount % = (Marked Price - Selling Price)/Marked Price × 100
⇒ S.P. = x - 4%x
⇒ S.P. = x - 0.04x
⇒ S.P. = 0.96x
Profit = S.P. - C.P.
⇒ Profit = 0.96x - 0.6x = 0.36x
⇒ Profit percentage = Profit/C.P. × 100
⇒ Profit% = 0.36x/0.6x × 100
⇒ Profit% = 60%