Question

A mobile phone retailer sells a phone for ₹P and earns a profit of 20%. For a special festive offer, he marks the same phone at ₹1.5 . 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 be (C).

Given that selling at ₹(P) gives a profit of (20%):

P = 1.2C
For the festive offer, the marked price is:
1.5P

A discount of (10%) is given, so actual selling price becomes:

$1.5P \times \frac{90}{100}$
= 1.35P

Now substitute (P = 1.2C):

$\text{Festive selling price} = 1.35 \times 1.2C$
$= 1.62C$

Profit percentage:

$\frac{1.62C - C}{C}\times100$
$= 0.62 \times 100$

= 62%

Therefore, the retailer makes:

$\boxed{62\% \text{ profit}}$