Multiple choice

If a wholesaler offers 36% discount, he earns 8.8% on selling a product. If he offers 20% less discount on the same product, his profit percentage will be

  1. 40%

  2. 42.8%

  3. 24.4%

  4. 46%

  5. 32.8%
Reveal answer Fill a bubble to check yourself
B Correct answer
AI explanation

Assume the marked price is 100. With a 36 percent discount, the selling price is 64, and this results in an 8.8 percent profit, meaning 64 equals 1.088 times the cost price. Solving for the cost price gives 64 divided by 1.088, which is approximately 58.82. Offering 20 percent less discount means the new discount is 16 percent, making the new selling price 84. The new profit percentage is ((84 minus 58.82) divided by 58.82) times 100, which equals 42.8 percent.

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