Multiple choice

A manufacturer marked the article 30 % above the cost price and he gives a discount of 20 % on the M.R.P. of the article .Find his profit percentage?

  1. 15%

  2. 6%

  3. 10%

  4. 4%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let cost price = 100. Marked price = 130 (30% above cost). Discount = 20% of 130 = 26. Selling price = 130 - 26 = 104. Profit = 104 - 100 = 4, so profit percentage = 4%. The common mistake is calculating 30% - 20% = 10%, but you must apply the discount to the marked price, not the cost price.

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