Question:

A dealer allows 32% discount on the marked price of an article and still gains 28%. If the cost price of the article is reduced by 10%, how much discount percent should the dealer allow now to get the same percentage of profit as before?

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To calculate the new discount after a price change, use the relationship between the new cost price and the desired profit margin.
Updated On: Apr 17, 2025
  • 38.2%
  • 38.9%
  • 40.4%
  • 40.6%
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The Correct Option is C

Solution and Explanation

Let the cost price be \( C \) and the marked price be \( M \). The initial discount is 32% and profit is 28%. Use the profit and discount formula to find the new discount percentage when the cost price is reduced by 10%.
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