Multiple choice

In order to maintain the price line, a trader allows a discount of $12 \%$ on the marked price of goods in his shop. However, he still makes a gross profit of $32 \%$ on the cost price. Find the profit percent he would have made on the selling price had he sold at the marked price.

  1. $33.33\%$
  2. $23.7\%$
  3. $30\%$
  4. $25\%$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Profit = 32%, so SP = 132. Discount = 12% on MP, so 0.88 * MP = 132, which means MP = 150. If sold at MP (150), profit = 150 - 100 = 50. Profit percentage on SP = (50 / 150) * 100 = 33.33%.

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