Let the printed price be p. If a 40% discount is given, the selling price is \(0.6(60p) = 36p\).
In order to make a profit of 20%, the selling price should be 1.2 times the total cost price, which is \(\frac{36p}{1.2} = 30p. \)
Ten toys are destroyed in the fire. The remaining toys are sold at a price such that the same amount of profit is made as in the conditional case.
The profit made on the remaining toys is 6p. The total selling price of the remaining toys is 36p.
The discount that should be given is \(50p – 36p = 14p. \)
The discount percentage is \(28\%.\)