Multiple choice

Lena owns a boutique in a popular shopping district. She buys 150 scarves for $750 in total. Lena marks up the price of each scarf by 50%, but during a clearance sale, she offers a 30% discount. What is the profit percentage Lena makes on each scarf after the discount?

  1. 20%

  2. 15%

  3. 10%

  4. 5%

  5. 3%
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D Correct answer
Explanation

Let the cost price of one scarf be 100 units. Marked price = 150 units. After a 30% discount, the selling price = 150 * 0.7 = 105 units. Profit = 105 - 100 = 5 units. Profit percentage = 5%.

AI explanation

The cost price of each scarf is \$750 divided by 150, which equals \$5. Applying the net profit formula for successive percentage changes, x + y + (xy/100), we use a markup of 50 and a discount of -30 to get 50 - 30 - (50 * 30 / 100), which simplifies to 5%. The result is 5%.

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