Multiple choice

When a commission of 36% is given in the retail price, profit is 8.8%. Find the profit percent when the commission is decreased by 24%.

  1. 76%

  2. 54%

  3. 58%

  4. 49.6%
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D Correct answer
AI explanation

Let the retail price be 100, so with a 36% commission the cost to the buyer is 64, and a profit of 8.8% makes the base cost 64 divided by 1.088, which is 58.82. Decreasing the commission by 24% from 36% leaves a new commission of 12%, making the new selling price 88. Using the profit percent formula, ((88 minus 58.82) divided by 58.82) multiplied by 100 gives a profit of approximately 49.6 percent.

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