Profit and Loss – 05

Question: A shopkeeper labeled the price of his article so as to earn a profit of 30% on the cost price. He then sold the articles by offering a discount of 10% on labeled price. What is the actual percent profit earned in the deal? [SBI Associate Bank PO, 2011]

1) 18%    (2) 15%     (3) 20%     (4) Can’t be determined (5) none of these

Sol.

Detailed Explanation:

First Method: Let the cost price (CP) be 100. Since the label price of the article is 30% above the cost price, so the label price is 130% of 100 = 130.

10% discount is given on LP, so the selling price (SP) is 130 – 10% of 130 = 130 – 13 = 117.

Profit = 117 – 100 = 17. CP is 100. So, profit is 17% Ans.       

Second Method: When any quantity is changed by x% and y% successively, then the quantity is changed by