A shopkeeper raises the printed price of his goods by 40% more than the purchased price. Then he offers a discount of 20% on the printed price. Further, he gives 10% discount on the discounted price. How much profit he earns ?
0.8%
A markup raises the cost price to the marked (printed) price, and successive discounts are applied one after another, each on the price left after the previous discount. The easiest way is to take the cost price as 100, apply each change as a multiplying factor, and compare the final selling price with the cost price to get the profit percentage.
Working:
Cost price = 100
Printed price = \(100 \times 1.40 = 140\)
Price after 20% discount = \(140 \times 0.80 = 112\)
Price after further 10% discount = \(112 \times 0.90 = 100.8\)
Profit = \(100.8 - 100 = 0.8\)
Profit % = \(\frac{0.8}{100} \times 100 = 0.8\%\)
Single factor check: \(1.4 \times 0.8 \times 0.9 = 1.008\)
8% comes from wrongly reading the gain 0.8 on a base of 10 instead of 100. 10% comes from simply subtracting the discounts from the markup \((40 - 20 - 10)\), which ignores that each discount is taken on a different base. 12% is the gain after only the first discount, from 100 to 112, and ignores the second discount.
Hence, 0.8%.
Important Questions from Discount and MP
If a trader marks the price of an article 50 percent more than the cost price and allows a discount of 30 percent, then what is his profit percentage?
Printed price of a mobile is Rs. 6,400. It is sold in Rs. 2,560 with two consecutive discount. If first discount is 20%, then what is the second discount?
A trader decided to mark his goods 15 percent above the cost price and then offered 40 percent discount. What will be the percentage of profit or loss?
On the sale of 20 percent discount, the value of an item is Rs. 760. What was the real value of the item?
What is the total discount applicable if 3 successive discounts of 20%, 10% and 12.5% are applied?
