Question

The marked price of a chair is \(150%\)\(\%\) of its cost price. A discount of \(30\%\) is given while selling the chair. What is the profit percentage?

• A. \(7\%\)
• B. \(5\%\)
• C. \(4\%\)
• D. \(6\%\)

Answer 1

The Correct Option is B

Let the cost price of the chair be \( C \). The marked price is given as \( 150\% \) of \( C \), which means:

\( \text{Marked Price} = 1.5 \times C \)

A discount of \( 30\% \) is applied to the marked price. Thus, the selling price \( S \) is:

\( S = \text{Marked Price} - \left(0.3 \times \text{Marked Price}\right) \)

\( S = 1.5C - (0.3 \times 1.5C) \)

\( S = 1.5C - 0.45C = 1.05C \)

The profit made is the difference between the selling price and the cost price, so:

\( \text{Profit} = S - C = 1.05C - C = 0.05C \)

To find the profit percentage:

\( \text{Profit Percentage} = \left(\frac{\text{Profit}}{C}\right) \times 100\% = \left(\frac{0.05C}{C}\right) \times 100\% = 5\% \)

Thus, the profit percentage is \( 5\%\).