The marked price of a chair is 20 percent more than its cost price. If the chair is sold for Rs. 220 after a discount of Rs. 20, then what will be the profit percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 10 percent.
Let the C.P. be x
The marked price of the chair is 20% more than its cost price, so
⇒ M.P. = x + 02x = 1.2x
The chair was sold for Rs. 220 after a discount of Rs. 20. Therefore, the selling price (SP) before the discount was
⇒ S.P. = 220 + 20 = Rs.240
Since the selling price after the discount is Rs. 240, and the marked price is 1.2x
⇒ 1.2x = 240
⇒ x = 240/1.2
⇒ x = Rs.200
⇒ Profit = 220 - 200 = Rs.20
Profit% = Profit/C.P. × 100
⇒ 20/200 × 100 = 10%
Thus, The profit percentage is 10%