Question

A shopkeeper bought an item for ₹600 and marked on it 50% higher than its cost price. He allowed 20% discount on it. Find his profit percentage.

• A. 20%
• B. 25%
• C. 30%
• D. 36%

Answer 1

The Correct Option is A

To determine the profit percentage, follow these steps:

1. First, calculate the marked price (M.P.) of the item. The item is marked 50% higher than its cost price (C.P.):

$$M.P. = C.P. + 0.50 \times C.P. = 1.50 \times 600 = 900$$

2. Next, compute the selling price (S.P.) after the discount. A 20% discount is allowed on the marked price:

$$S.P. = M.P. - 0.20 \times M.P. = 0.80 \times 900 = 720$$

3. Now calculate the profit made by the shopkeeper. The profit is the difference between the selling price and the cost price:

$$\text{Profit} = S.P. - C.P. = 720 - 600 = 120$$

4. Finally, find the profit percentage using the formula:

$$\text{Profit Percentage} = \left(\frac{\text{Profit}}{\text{C.P.}} \right) \times 100 = \left(\frac{120}{600} \right) \times 100= 20\%$$

Therefore, the shopkeeper's profit percentage is 20%.