The marked price of an article is 160 percent of the cost price. If 35 percent discount is given. then what will be the profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 4 percent.
The cost price (C.P.) of the article = ( C).
The marked price (M.P.) is given as 160% of the cost price,
⇒ M.P. = 1.6 × C
A 35% discount is given on the marked price, meaning the selling price (S.P.) will be 65% of the marked price:
⇒ S.P. = 0.65 × M.P.
⇒ S.P. = 0.65 × 1.6 × C = 1.04 × C
Profit = S.P. - C.P. = 1.04 × C - C = 0.04 × C
Profit Percentage = Profit / cost Price × 100
Profit Percentage =