Multiple choice

A radio manufacturer fixed the marked price of radio as Rs. 325, enhancing 30% of the cost of production but allowed 12% discount to his customer during sale. The profit in this transaction is -

  1. Rs. 18

  2. Rs. 72

  3. Rs. 36

  4. Rs. 17.50
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost price = Rs. 325 / 1.30 = Rs. 250 (since marked price is 30% above cost). Selling price after 12% discount = Rs. 325 × 0.88 = Rs. 286. Profit = Selling Price - Cost Price = Rs. 286 - Rs. 250 = Rs. 36. This represents a 14.4% profit on cost.

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