Question

Ajay buys an article with 20% discount on the marked price and sells at 8% discount on the marked price. What is his profit or loss percentage (%)?

• A. 12% profit
• B. 12% loss
• C. 15% loss
• D. 15% profit

Hint:

When calculating profit or loss percentage, always compare the profit with the cost price.

Answer 1

The Correct Option is D

Let the marked price be \( M \).
Cost price (C.P.) = \( M - 0.20M = 0.80M \).
Selling price (S.P.) = \( M - 0.08M = 0.92M \).
Profit = Selling Price - Cost Price
= \( 0.92M - 0.80M = 0.12M \).
Profit Percentage = \[ \frac{\text{Profit}}{\text{Cost Price}} \times 100\]
\[= \frac{0.12M}{0.80M} \times 100 = 15% \].
Thus, the correct answer is (A) 15% profit.