Multiple choice

The ratio of profit on an article to discount offered on it is 5 : 3. If the CP of the article increases by 10%, the value of profit decreases by 38%. What will be the profit percentage when MP of the article is increased by 20%, keeping the increased value of CP and value of discount the same?

  1. 40.67%

  2. 41.62%

  3. 42.15%

  4. None of these

  5. Data Inadequate

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A Correct answer
Explanation

Let Profit = 5k, Discount = 3k. MP = CP + Profit + Discount = CP + 8k. If CP increases by 10% (1.1CP), Profit decreases by 38% (0.62 * 5k = 3.1k). The relationship between MP, CP, and Discount is complex, but the calculation leads to 40.67%.