Question

A mobile phone retailer sells a phone for EP and earns a profit of 20%. For a special festive offer, he marks the same phone at ₹1.5P. At the offer, he provides a discount of 10%. What will be the percentage profit that he will make during the festive offer?

• A. 26%
• B. 56%
• C. 62%
• D. 60%

Answer 1

Answer:

C. 62%

Let the cost price = C.

The retailer sells it for ₹(P) at a 20% profit:

P=1.2C

Therefore,

$C=\frac{P}{1.2}=\frac{5P}{6}$

For the festive offer:

Marked price:

1.5P

After a 10% discount:

$\text{Offer SP}=1.5P\times90\%=1.35P$
Profit:

$1.35P-\frac{5P}{6}$
$=\frac{81P-50P}{60}$
$=\frac{31P}{60}$

Profit percentage:

$\frac{\frac{31P}{60}}{\frac{5P}{6}}\times100$
$=62\%$