Question

A furniture store sells a dining table for ₹Z, making a 25% profit. During a festive season, they increase the marked price of the same table to ₹1.6Z. They then offer a special discount of 20% on this increased marked price. What will be the percentage profit made by the store during the festive season ?

• A. 26%
• B. 56%
• C. 62%
• D. 60%

Answer 1

Answer:

D. 60%

Let the cost price (CP) of the table be (C).

Given that selling at ₹(Z) gives a 25% profit:

Z = 1.25C

So,

$C = \frac{Z}{1.25} = 0.8Z$

Festive season

Marked price:

1.6Z

After a 20% discount, the actual selling price becomes:

$1.6Z \times 0.8 = 1.28Z$

Profit

$\text{Profit} = 1.28Z - 0.8Z = 0.48Z$

Profit percentage

$\text{Profit \%}=\frac{0.48Z}{0.8Z}\times 100$
=60%

Percentage profit during the festive season = 60%.