Question

P makes a profit of 12% on a transaction. Had he bought the article at 10% less and sold it for 4% less, by what percent his profit percentage would have increased?

• A. 53.65%
• B. 62.25%
• C. 19.4%
• D. None of these

Hint:

A decrease in the cost price and selling price leads to a significant increase in profit percentage. Calculate based on the new cost and selling price values.

Answer 1

The Correct Option is B

Let the cost price of the article be \( C \), and the selling price be \( S \). The profit percentage is given as: \[ \text{Profit Percentage} = \frac{S - C}{C} \times 100 = 12% \] This means: \[ S = C \times (1 + 0.12) = 1.12C \] Now, if the article were bought at 10% less, the cost price would become \( 0.9C \), and if it were sold at 4% less, the selling price would become \( 0.96S = 0.96 \times 1.12C = 1.0752C \). The new profit percentage is: \[ \text{New Profit Percentage} = \frac{1.0752C - 0.9C}{0.9C} \times 100 = \frac{0.1752C}{0.9C} \times 100 = 19.4% \] Thus, the increase in profit percentage is: \[ 19.4% - 12% = 7.4% \] So, the correct answer is (b) 62.25%.