Question

The marked price of a certain commodity is 30% higher than its cost price. A discount of 20% on the marked price makes the selling price Rs. 208. What is the net profit as a percent of cost price?

• A. 10%
• B. 4%
• C. 8%
• D. 12%

Answer 1

Answer: (B)

4%

Answer 2

Let cost price of article be Rs.100$x$
Marked price = Rs.130$x$
After 20% discount, selling price =$\frac{80}{100}\times$ 130$x$=208
4 ×26$x$=208
$x=2$----(i)
Thus, cost price of article = Rs. 200
Therefore, Net profit as percent of cost price =$(\frac{SP-CP}{CP})\times100$
=$(\frac{208-200}{200})\times100=4\%$
The correct answer is (B): 4%