Multiple choice

A shopkeeper purchase his goods at a discount of 10% on the list price. He normally gives a discount of 6% to his customers. If during a special scheme, he gets an additional discount of 2% on his purchase price, find his approximate profit percentage?

  1. 11%

  2. 12.5%

  3. 15%

  4. 25%

  5. Can’t be determined

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Shopkeeper buys at 10% discount on list price, sells at 6% discount to customers. Gets additional 2% on purchase. But without knowing the actual list price or selling quantities, we cannot determine the absolute profit percentage. The relationship between purchase price and selling price is insufficient.