Multiple choice

When a producer allows 36% discount on the retail price of his product, he earns a profit of 8.8%. What would be his profit percent if the discount is reduced by 24%?

  1. $45.5\%$
  2. $45.8\%$
  3. $46.4\%$
  4. $49.6\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let MP = 100. Discount = 36%, SP = 64. Profit = 8.8%, so CP = 64 / 1.088 = 58.82. If discount is reduced by 24%, new discount = 36 - 24 = 12%. New SP = 88. Profit = 88 - 58.82 = 29.18. Profit% = (29.18 / 58.82) * 100 = 49.6%.