Multiple choice

A jewellery store owner marks up the prices of his products by 20% above the cost price. He sells 70% of the jewellery at the marked price, giving a 10% discount, and the remaining at a 20% discount on the marked price. What is the overall profit/loss percentage for the jewellery store owner?

  1. 3.6

  2. 4.4

  3. 5.6

  4. 8.2

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let CP = 100, MP = 120. 70% sold at 10% discount (120 * 0.9 = 108). 30% sold at 20% discount (120 * 0.8 = 96). Total Revenue = 0.7 * 108 + 0.3 * 96 = 75.6 + 28.8 = 104.4. Profit = 4.4%.

AI explanation

Assume the total cost price of all jewellery is 100, making the total marked price 120. The first portion, which is 70% of the items, sells at a 10% discount on the marked price, bringing revenue of 0.7 times 108, which equals 75.6. The remaining 30% sells at a 20% discount, yielding 0.3 times 96, equating to 28.8. The total revenue is 75.6 plus 28.8, resulting in 104.4 against the initial cost of 100, yielding a 4.4% profit.

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